Party without joint control in a joint venture

Learning objectives

• Determine the Standard applicable to the interest of a party without joint control in a joint venture depending on whether or not it has significant influence.L2

Normative references

• 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.

2 questions

• Kappa SA takes part in a joint venture without having joint control. It sits on the board and takes part in the joint venture's financial and operating policy decisions; the analysis of those facts concludes that it has significant influence (judgement established by the case). How does Kappa account for its interest?L2
• A colleague writes: "A party that does not have joint control of a joint venture applies IFRS 9 to its interest; it does not have to look for whether it has significant influence." What is the error in this reasoning?L2