CERTYNEX IFRS ACADEMY

The Vallon and Sérac groups set up a joint entity whose control they share, each contributing a business to it. The joint entity prepares its own financial statements. How is the formation of this joint arrangement treated in those financial statements under IFRS 3?

It is excluded from the scope of IFRS 3, whatever the type of joint arrangement.

It is excluded from the scope when the arrangement is a joint venture, but not when it is a joint operation.

It falls within IFRS 3: each contributor is the acquirer of the business contributed by the other.

It is excluded from the scope in the financial statements of the joint entity and, in the same way, in those of each investor group.