CERTYNEX IFRS ACADEMY

Delta SA has two material joint ventures, Aqua and Terra, operating in neighbouring sectors. It considers adding their summarised financial information into a single table headed "joint ventures" (case facts). What is concluded?

The summarised information of each material joint venture is provided individually, without aggregation: the general aggregation principle in paragraph 4 does not permit this grouping.

Grouping is permitted, because paragraph 4 lets the entity choose the degree of aggregation that seems clearest to users.

Grouping is permitted where the two joint ventures carry on neighbouring activities, the proximity of the sectors justifying a common presentation, as for the segments of a single activity.

Grouping is permitted if the table total remains above the materiality threshold that management has set for the whole group.