What is the name of IFRS 11?

Navigating IFRS 11 and Joint Arrangements

When two or more companies join forces for a business project, financial reporting can quickly become complex. This is where IFRS 11 comes into play, providing a clear framework for identifying and accounting for collaborative business ventures.

Under this accounting standard, a joint arrangement is characterized by contractual control shared between parties. IFRS 11 splits these arrangements into two distinct categories: joint operations and joint ventures.

Distinguishing between the two is crucial because it changes how assets, liabilities, revenues, and expenses are reported on the balance sheet. Getting this classification right ensures transparency and accuracy for investors and stakeholders relying on financial statements.