CERTYNEX IFRS ACADEMY

Orca SA, a joint operator of a joint operation, recognises its share of an industrial installation held jointly, which is an item of property, plant and equipment (case facts). Which standard governs the measurement of this share of the asset?

IFRS 11, which contains the measurement rules for property, plant and equipment held within a joint operation.

IAS 16, as the joint operator applies the IFRSs relevant to each asset of its interest.

IAS 28, the share of a jointly held installation being measured like an investment in an associate.

IFRS 3, the installation being measured as in a business combination since it is held with the other parties to the arrangement.