Summary Section 15 deals with the recognition, measurement and disclosure for joint ventures. A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Joint ventures can take the form of jointly controlled operations, jointly controlled assets, or jointly controlled entities. What is new? Sections 15.4, […]

Summary Section 14 defines what an associate is, how it should be recognised, measured, derecognised and disclosed. An associate is an entity over which the investor has significant influence and which is not a subsidiary or a joint venture (Section 14.2). Significant influence is the power to participate in (but not to control or jointly […]

Summary Inventories are defined as assets: held for sale in the ordinary course of business in the process of production for such sale; or in the form of materials or supplies to be consumed in the production process or rendering of services. Section 13 applies to all inventories with the exception of: work in progress […]

Summary Section 12 deals with more complex financial instruments and transactions which do not come within the scope of Section 11 and also have similar exceptions to Section 11 (as detailed in Section 11 of the guide) which are detailed in Section 12.3. In addition to Section 11 exclusions the below are also excluded from […]

Summary Section 11 defines basic financial instruments for all companies with the exception of public benefit entities. Basic financial instruments coming within the scope of section 11 are: Cash; Demand and fixed term deposits; Commercial paper and bills; Notes, loan receivable and payable; Bonds and similar debt instruments; Accounts payable, accounts receivable; Investments in non-convertible […]