CERTYNEX IFRS ACADEMY

Kappa SA takes part in a joint venture without having joint control. It sits on the board and takes part in the joint venture's financial and operating policy decisions; the analysis of those facts concludes that it has significant influence (judgement established by the case). How does Kappa account for its interest?

Under IFRS 9, because a party without joint control applies that standard whatever its influence over the joint venture.

Under IAS 28, that is, using the equity method, because it has significant influence over the joint venture.

Line by line like a joint operator, its participation in decisions giving it rights to the assets.

At cost, because a party without joint control can neither equity account nor measure its interest at fair value.