This free, guided checker walks your finance team through the key decision points for IFRS 11 Joint Arrangements Assessment. Answer a few questions to see the likely treatment and the evidence to document.
Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
This tool is a high-level IFRS screening aid for general information only and is not accounting, audit or legal advice. Conclusions require entity-specific evidence and judgement - confirm the treatment with your advisor.
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
Joint control exists only when decisions about relevant activities require unanimous consent of the sharing parties, not merely board participation without veto rights.
Without unanimous consent over the relevant activities there is no joint control, so IFRS 11 does not apply; assess control under IFRS 10 or significant influence under IAS 28 (IFRS 11.7).
Official guidance: IFRS issued standards
Consultation memos treat unanimous investor-and-sponsor director consent over annual budgets and C-suite appointments as joint control over relevant activities even when ordinary resolutions need only a majority.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IFRS issued standards
Significant influence may coexist with contractual participation, but joint control requires shared power; a sponsor controlling shareholder resolutions can rebut joint control until completion conditions are satisfied.
Another party's majority voting power blocks joint control; assess significant influence and equity accounting under IAS 28 rather than IFRS 11 (IAS 28.6).
Official guidance: IFRS issued standards
Legal form is the starting point, not the ending point, for classifying a separate vehicle that owns hospital or project assets.
An arrangement not structured through a separate vehicle is a joint operation; recognise the share of assets, liabilities, revenue, and expenses (IFRS 11.B16; IFRS 11.20).
Official guidance: IFRS issued standards
Consider whether the vehicle is transparent or whether its assets and liabilities belong to the parties rather than the corporate shell alone.
The legal form gives direct rights to assets and obligations for liabilities, so the arrangement is a joint operation (IFRS 11.B22-B24; IFRS 11.20).
Official guidance: IFRS issued standards
Read shareholder agreements, off-take arrangements, and funding terms together with super-majority board schedules.
The contractual terms create direct rights to assets and obligations for liabilities, so the arrangement is a joint operation (IFRS 11.B25-B28; IFRS 11.20).
Official guidance: IFRS issued standards
An arrangement designed to provide all output to the parties may create direct economic obligations even without explicit contractual asset rights.
Other facts and circumstances create direct rights and obligations, so the arrangement is a joint operation (IFRS 11.B29-B33; IFRS 11.20).
Official guidance: IFRS issued standards
A regular corporate vehicle liable for its own debts with parties sharing profit or loss and net assets is typically a joint venture measured under the equity method.
Rights to net assets are not established; revisit the direct asset and liability rights analysis before concluding joint venture classification (IFRS 11.16).
Official guidance: IFRS issued standards
Equity accounting for a joint venture starts when joint control and the net-asset interest exist; prepayments before that date may remain financial assets at fair value.
Rights to the net assets are confirmed; account for the interest using the equity method under IFRS 11.24 and IAS 28 (IAS 28.10). Document the joint-control and commencement dates and the initial cost before applying the equity method (IAS 28.10).
Official guidance: IFRS issued standards
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