Ind AS 111, Joint Plans: The objective of Ind AS 111 is to establish principles for financial reporting by entities that have an interest in arrangements that are managed collectively (i.e., joint plans). The Requirement requires a party to a joint arrangement to identify the type of joint arrangement in which it is involved by examining its rights and responsibilities arising from the arrangement.
Ind AS 111
The Standard will be applied by all entities that are a celebration to a joint plan. A joint plan is a plan of which two or more parties have joint control.
A joint arrangement is either a joint operation or a joint venture.
The Standard classifies joint arrangements into 2 types– joint operations and joint endeavors. The category of a joint arrangement as a joint operation or a joint venture relies on the rights and responsibilities of the celebrations to the plan. A joint operation is a joint arrangement whereby the celebrations that have joint control of the plan have rights to the properties, and obligations for the liabilities, associating with the plan. Those parties are called joint operators. A joint endeavor is a joint plan whereby the parties that have joint control of the arrangement have rights to the net properties of the plan. Those celebrations are called joint venturers.
An entity figures out the type of joint plan in which it is involved by considering its rights and obligations. An entity assesses its rights and responsibilities by thinking about the structure and legal type of the arrangement, the legal terms accepted by the parties to the arrangement and, when pertinent, other facts and scenarios.
The Basic requires a joint operator to represent the possessions, liabilities, revenues and costs associating with its interest in a joint operation in accordance with the Ind AS applicable to the specific assets, liabilities, profits and expenditures.
The Basic needs a joint venturer to identify its interest in a joint venture as a financial investment and to represent that investment using the equity method in accordance with Ind AS 28, Investments in Associates and Joint Ventures, unless the entity is excused from using the equity technique as defined in that requirement.
Advised Articles
- Types of Vouchers
- Types of Lease
- Scope of Accounting
- Fundamental Concepts of Accounting
- CA Final Admit Card
- CA Final RTP
- Pan Card Status
- CA IPCC RTP
- CA Final Question Documents
- Earnings Tax Slab Rates
- Sub Fields of Accounting
