Party without joint control in a joint operation

Learning objectives

• Determine whether a party without joint control accounts for its interest using the joint operator requirement.L2

Normative references

• IFRS 11 §23A party that participates in a joint operation without having joint control also accounts for its interest in accordance with paras. 20 to 22 if it has rights to the assets and obligations for the liabilities relating to the joint operation; otherwise it applies the IFRSs applicable to its interest.

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

2 questions

• A party that takes part in a joint operation without having joint control accounts for its interest using the joint operator's rules where it has rights to the assets and obligations for the liabilities of the joint operation.L2
• Nova SA holds a 10% interest in a joint operation, without having joint control. The agreement gives it neither rights to the assets nor obligations for the liabilities of the joint operation (case facts). How does Nova account for its interest?L2