CERTYNEX IFRS ACADEMY

Boréal SA acquires a 30% interest in a joint operation whose activity is a mine in production, with its inputs, processes and output; the analysis shows that it is a business within the meaning of IFRS 3 (case facts). What must Boréal apply to the acquisition of its interest?

The principles of IFRS 3 are set aside, the acquisition of an interest in a joint operation being treated as the acquisition of a single asset at original cost, without recognising the identifiable assets and liabilities.

The principles of IFRS 3 with no need to check that the activity is a business, that status being given for any joint operation.

The principles on business combination accounting in IFRS 3 and in other IFRSs that do not conflict with IFRS 11, with the disclosures required by those standards.

The equity method under IAS 28 on the interest acquired, the joint operation being presented as a single investment.