IASB issues new standard for acquisitions of joint operations

BY KEN TYSIAC

New international accounting rules for acquisitions of interests in joint operations were published Tuesday by the International Accounting Standards Board (IASB).

Amendments to IFRS 11, Joint Arrangements, specify the appropriate accounting treatment for an acquisition of an interest in a joint operation that constitutes a business.

The IASB decided that entities that acquire interests in joint operations should apply all the principles on business combinations accounting in IFRS 3, Business Combinations, and other IFRSs, that do not conflict with the guidance in IFRS 11. These entities should disclose the information that is required in those IFRSs in relation to business combinations, the IASB decided.

The changes originated with an issue that was submitted to the IFRS Interpretations Committee, which recommended amendments to IFRS 11.

More information is available on the IASB’s website.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out