MFRS

Accounting for the contribution of assets or businesses to a joint arrangement by a part.....

 

This issue specifically provides guidance on accounting that should be applied by the joint arrangement (either a joint operation or joint venture) receiving non-monetary contributions upon its initial formation.

A party may contribute assets or businesses to a joint arrangement in exchange for equity interests (shares where the entity is an incorporated entity) in that entity. The issue is how the joint arrangement (either a joint venture or a joint operation) should record that asset or business.