Joint operation
A joint operator recognises its own assets, liabilities, revenue and expenses, including its share of those held or incurred jointly, under applicable IFRS standards. Determine classification from rights and obligations, not the arrangement’s name or presence of a separate vehicle alone. Assess the agreement and other relevant facts.
Worked example
Two companies jointly control a pipeline and each owns half the pipeline and is responsible for half its operating liabilities. Each recognises its share of the asset and obligations under the relevant standards, assuming the arrangement is a joint operation.
Common mistake
Applying a single equity-accounted investment automatically, or assuming all arrangements in a separate vehicle are joint ventures.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |