Chapter 5 Joint Arrangements IFRS 11 Lecture

Hi Chris

I just wanted to ask a question about the IFRS 11 Lecture, with regards to the example question and answer.

The $6m (DR PPE CR BANK/PAYABLE) share of the cost of the arrangement (Natural Gas Station) had already been recorded in the Statement of Financial Position, but my question is how the revenue and costs and the depreciation were recorded in the Financial Statements.

As this what I made the Journal entries from the joint operation to Lyon;

DR Receivable $2,600 (Physical)
CR Profit & Loss $2,600 (CR P&L Revenue $12,000, DR P&L Direct Cost $8,800, DR P&L Operating Cost $600)

DR P&L Depreciation $600 (Non physical)
CR PPE $600

Please let me know if I am missing something.

Thanks

Matthew