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IFRS 11Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5
WorkpaperIFRS 11 — Joint ArrangementsL1 · L2 · L3 · L4

Classification of a joint arrangement: joint control, separate vehicle, legal form, contractual terms and other facts and circumstances

6 missions8 sections to document60 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

Describe the arrangement, the decisions on the relevant activities and the consent they require, then the vehicle if any, its legal form, the terms of the arrangement and the other facts and circumstances. Percentages, decision thresholds and amounts are case data: none is presented as imposed by the standard, and the classification remains a judgment supported by the enforceable rights and obligations of the parties.

8 sections · 25 blocks · 1 calculation · 0 entries

  • IFRS 11
  • IFRS 11 §14
  • IFRS 11 §B16
  • IFRS 11 §B30

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

6 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Joint arrangement without a separate vehicle: joint control, unanimity, classification as a joint operation and party without joint control
Case tasks documented here
  • Do the decisions on the relevant activities require the unanimous consent of the parties sharing control, and what is the combined share of those parties?
  • Does Rivane have joint control? How does it account for its interest?
  • Is the arrangement structured through a separate vehicle? What is its type?
1

Facts and data

Inputs

  • Arrangement: parties, decision rules on the relevant activities, consent required

    TextRequired

    CONTRACT_BETWEEN_FOUR_PARTIES_CONSENT_OF_THREE_REQUIRED_FOR_RELEVANT_ACTIVITIES

  • Decision threshold set by the arrangement (%, case data)

    Number

  • Combined share of the parties whose consent is required (%)

    Number

    90 %

  • Share of the parties without joint control (%)

    Number

    10 %

  • Share of party 1 of the combination whose unanimous consent is required (%)

    Number

    35 %

  • Share of party 2 of the combination whose unanimous consent is required (%)

    Number

    30 %

  • Share of party 3 of the combination whose unanimous consent is required (%)

    Number

    25 %

  • Separate vehicle: existence and legal form

    Text

    NO_COMPANY_CREATED_DEPOT_OWNED_BY_THE_PARTIES

  • Terms of the contractual arrangement on assets, liabilities, revenues and expenses

    Text

  • Other facts and circumstances: output, cash flows, enforceable rights

    Text

2

Supporting documents

Evidence

  • Documents obtained and referenced (arrangement, articles of the vehicle, offtake contracts)

    EvidenceRequired

3

Analysis of the arrangement and its classification

Analysis

IFRS 11IFRS 11 §14IFRS 11 §B16IFRS 11 §B30IFRS 11

  • Points examined: arrangement and classification

    ChecklistRequired

    • Collective control of the arrangement assessed before looking for joint control
    • Decisions on the relevant activities requiring the unanimous consent of the parties sharing control
    • Parties taking part without joint control identified
    • Existence of a separate vehicle established: without a separate vehicle, joint operation
    • Legal form of the vehicle: a starting point, never sufficient on its own
    • Contractual terms: confirm or change the rights suggested by the legal form
    • Other facts and circumstances: rights to assets and obligations for liabilities
    • Enforceable rights and legal or constructive obligations, not the design or intention of the parties
4

Calculations

Calculations

IFRS 11

  • Cumulative share of the combination of parties (sum of the shares, %)

    Calculation

    90 %

    Share of party 1 of the combination whose unanimous consent is required (%) ; Share of party 2 of the combination whose unanimous consent is required (%) ; Share of party 3 of the combination whose unanimous consent is required (%)

5

Judgments: joint control, vehicle and legal form, contractual terms, other facts and circumstances

Judgment

IFRS 11IFRS 11 §14IFRS 11 §B16IFRS 11 §B30IFRS 11

  • Joint control of the arrangement

    JudgmentRequired

    Joint control

    Joint control / No joint control / Not applicable

    Professional judgment: joint control is supported by the unanimous consent of the parties sharing control; the decision threshold and the shares are data of the arrangement, never a percentage imposed by the standard.

  • Rationale: collective control, decisions and unanimous consent

    Text

    CONSENT_OF_THE_THREE_PARTIES_REQUIRED_FOR_RELEVANT_ACTIVITIES

  • Separate vehicle and legal form

    JudgmentRequired

    No separate vehicle

    No separate vehicle / Separate vehicle / Not applicable

  • Rationale: structure and legal form

    Text

    NO_VEHICLE_SO_JOINT_OPERATION

  • Terms of the contractual arrangement

    JudgmentRequired

    Not applicable

    The terms confirm the rights suggested by the form / The terms change the rights suggested by the form / Not applicable

  • Rationale: clauses read with the legal form

    Text

  • Other facts and circumstances

    JudgmentRequired

    Not applicable

    Enforceable rights to assets and obligations for liabilities / No such rights / Not applicable

    Professional judgment: the assessment looks at the existence of enforceable rights to assets and of legal or constructive obligations for liabilities, not at the purpose of the arrangement, the needs of the entity or its past practice.

  • Rationale: enforceability of the rights and obligations

    Text

  • Classification retained

    Choice

    Joint operation

    Joint operation / Joint venture / Not a joint arrangement

6

Items to document for the disclosures on the classification judgments

Disclosure

IFRS 11IFRS 11 §14

  • Significant judgments to explain in the notes

    Checklist

    • Judgments that led to the conclusion of joint control
    • Judgments on the type of arrangement when it is structured through a separate vehicle
7

Conclusion

Conclusion

  • Whether an arrangement exists, the type retained (joint operation or joint venture) and the judgments that support it

    ConclusionRequired

8

Normative references

References

  • Normative references cited in this workpaper

    References

9

Checks and financial statement impact

  • Arrangement describedPass
  • Joint control judged and supportedPass
  • Classification retainedPass
  • Cumulative share recalculated = share retainedPass
  • The combination reaches the decision threshold set by the arrangement (case data)Not evaluated
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0