Document ID: chunk:federal_register_of_legislation:F2019C00335:body:0:p22
Version: federal_register_of_legislation:F2019C00335
Segment Type: other
Provision Reference: 
Character Range: 59114–61947

entity applies this Standard but does not yet apply AASB 9, any reference to AASB 9 shall be read as a reference to AASB 139 Financial Instruments: Recognition and Measurement.

Accounting for acquisitions of interests in joint operations
C14A AASB 2014-3, issued in August 2014, amended the previous version of this Standard as follows: amended the heading after paragraph B33 and added paragraphs 21A, B33A–B33D, C1AA and their related headings. An entity shall apply those amendments prospectively for acquisitions of interests in joint operations in which the activities of the joint operations constitute businesses, as defined in AASB 3, for those acquisitions occurring from the beginning of the first period in which it applies those amendments. Consequently, amounts recognised for acquisitions of interests in joint operations occurring in prior periods shall not be adjusted.

Withdrawal of other IFRSs
C15 [Deleted by the AASB]

Illustrative examples
AASB 11 Joint Arrangements
These examples accompany, but are not part of, AASB 11. They illustrate aspects of AASB 11 but are not intended to provide interpretative guidance.
IE1 These examples portray hypothetical situations illustrating the judgements that might be used when applying AASB 11 in different situations. Although some aspects of the examples may be present in actual fact patterns, all relevant facts and circumstances of a particular fact pattern would need to be evaluated when applying AASB 11.

Example 1 – Construction services
IE2 A and B (the parties) are two companies whose businesses are the provision of many types of public and private construction services. They set up a contractual arrangement to work together for the purpose of fulfilling a contract with a government for the design and construction of a road between two cities. The contractual arrangement determines the participation shares of A and B and establishes joint control of the arrangement, the subject matter of which is the delivery of the road.
IE3 The parties set up a separate vehicle (entity Z) through which to conduct the arrangement. Entity Z, on behalf of A and B, enters into the contract with the government. In addition, the assets and liabilities relating to the arrangement are held in entity Z. The main feature of entity Z's legal form is that the parties, not entity Z, have rights to the assets, and obligations for the liabilities, of the entity.
IE4 The contractual arrangement between A and B additionally establishes that:
(a) the rights to all the assets needed to undertake the activities of the arrangement are shared by the parties on the basis of their participation shares in the arrangement;
(b) the parties have several and joint responsibility for all operating and financial obligations relating to the activities of the arrangement on the