Link with IAS 28: equity accounting of the joint venture

Learning objectives

• Identify the IAS 28 equity method requirements that apply to a joint venture.L2, L3

Normative references

• IFRS 11 §24A joint venturer recognises its interest in a joint venture as an investment and accounts for it using the equity method in accordance with IAS 28, unless it is exempted from applying that method.
• IFRS 11 §25A party that participates in a joint venture without having joint control accounts for its interest in accordance with IFRS 9, unless it has significant influence, in which case it applies IAS 28.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• A colleague writes: "IFRS 11 says nothing about the share of profit, dividends or impairment of an interest in a joint venture; these topics therefore do not have to be examined for a joint venture." What is the error in this reasoning?L2