IASB issues new standard for acquisitions of joint operations


By Ken Tysiac

New international accounting rules for acquisitions of interests in joint operations were published Tuesday by the International Accounting Standards Board (IASB).

Amendments to IFRS 11, Joint Arrangements, specify the appropriate accounting treatment for an acquisition of an interest in a joint operation that constitutes a business.

The IASB decided that entities that acquire interests in joint operations should apply all the principles on business combinations accounting in IFRS 3, Business Combinations, and other IFRSs, that do not conflict with the guidance in IFRS 11. These entities should disclose the information that is required in those IFRSs in relation to business combinations, the IASB decided.

The changes originated with an issue that was submitted to the IFRS Interpretations Committee, which recommended amendments to IFRS 11.

More information is available on the IASB’s website.

Ken Tysiac (ktysiac@aicpa.org) is a CGMA Magazine senior editor.

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