Skip to content

CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

Ind AS 111 states that a joint arrangement is either a joint operation or a joint venture. Dhruv Ltd holds an interest in an arrangement that is found to be outside the scope of Ind AS 111 because no two parties have joint control. How should Dhruv Ltd account for its interest?

Dhruv Ltd should account for its interest in accordance with relevant Ind ASs, such as Ind AS 110, Ind AS 28 or Ind AS 109, depending on its involvement. Since the arrangement lacks joint control, it falls outside Ind AS 111, so that standard cannot be applied.

  1. AUnder Ind AS 111 as a joint operation by default
  2. BIn accordance with relevant Ind ASs such as Ind AS 110, Ind AS 28 or Ind AS 109Correct
  3. COnly by expensing the contributions in profit or loss
  4. DUnder Ind AS 111 as a joint venture using the equity method

Explanation

When an arrangement is outside the scope of Ind AS 111, the entity accounts for its interest under relevant Ind ASs such as Ind AS 110 (consolidation), Ind AS 28 (associates) or Ind AS 109 (financial instruments), depending on the facts. Options treating it as a joint operation or joint venture wrongly apply Ind AS 111 itself.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 111 Joint Arrangements shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 111 Joint ArrangementsFree diagnostic mock

More Ind AS 111 Joint Arrangements questions