CERTYNEX IFRS ACADEMY

Orca SA is a joint operator of a joint operation carried by a separate vehicle. In its consolidated statements, it recognises its shares of assets, liabilities, revenues and expenses. For its separate statements, its finance team proposes to additionally recognise its interest in the vehicle at cost (case facts). What is concluded in light of the Interpretations Committee's 2015 decision?

The interest in the vehicle is recognised at cost in the separate statements, which follow a logic of their own distinct from that of the joint operator's consolidated statements.

Orca's rights and obligations being the same in both sets of statements, the accounting is identical and the interest in the vehicle is not recognised in addition.

The interest in the vehicle is recognised at fair value in place of the shares, the separate statements having to reflect a single investment.

Orca freely chooses, each year, between the shares and the interest at cost, the standard leaving that policy choice to separate statements.