Exposure Draft ED/2012/7 Acquisition of an Interest in a Joint Operation (Proposed amendment to IFRS 11)

The International Accounting Standards Board (IASB) has published for comment ED/2012/7 an Exposure Draft of proposed amendments to IFRS 11 Joint Arrangements.

The amendment proposes to introduce guidance on the accounting, by a joint operator, for the acquisition of an interest in a joint operation, as defined in IFRS 11 Joint Arrangements, in which the activity of the joint operation constitutes a business (as defined in IFRS 3 Business Combinations).

The ED proposes to amend IFRS 11 and IFRS 1 First-time Adoption of International Financial Reporting Standards so that a joint operator accounting for the acquisition of an interest in a joint operation in which the activity of the joint operation constitutes a business applies the relevant principles for business combinations accounting in IFRS 3 and other Standards, and discloses the relevant information required by those Standards for business combinations.

The proposed amendment applies to the acquisition of an interest in an existing joint operation and to the acquisition of an interest in a joint operation on its formation, except where the formation of the joint operation coincides with the formation of the business.

Comments can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chairman, New Zealand Accounting Standards Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to submissions@xrb.govt.nz. Comments can also be made electronically to the IASB website (www.ifrs.org), using the ‘Comment on a proposal’ page.

Comments are due to the NZASB by 28 March 2013 and to the IASB by 23 April 2013.

Read IASB Exposure Draft 2012/7

 

Date: 17 December 2012

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