CERTYNEX IFRS ACADEMY

Alba SA participates in a joint venture without exercising joint control. It holds 25% of the entity's voting rights and nothing in the case rebuts the presumption of significant influence (facts of the case). How does Alba account for its interest?

Under IFRS 9, at fair value: the absence of joint control rules out IAS 28 whatever the influence exercised over the entity, even if presumed.

Under IFRS 11, as an investment in a joint venture: any party to the joint venture applies the equity method in the same way.

By consolidation: a 25% interest in a joint venture leads to consolidating the entity under IFRS 10, even without joint control.

Under IAS 28, using the equity method: a party without joint control applies IFRS 9, unless it has significant influence, in which case it applies IAS 28.