{"id":"F2015L01627","name":"AASB 11 - Joint Arrangements - July 2015","slug":"aasb-11-joint-arrangements-july-2015","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":93449,"registerId":"commonwealth-F2015L01627-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Other enquiries","sectionType":"part","heading":"Other enquiries","content":"## Other enquiries\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nCOPYRIGHT\n\n© Commonwealth of Australia 2019\n\nThis compiled AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The National Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.\n\nAll existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org.","sortOrder":0},{"sectionNumber":"Accounting Standard AASB 11","sectionType":"part","heading":"Accounting Standard AASB 11","content":"# Accounting Standard AASB 11\n\nThe Australian Accounting Standards Board made Accounting Standard AASB 11 Joint Arrangements under section 334 of the Corporations Act 2001 on 24 July 2015.\n\nThis compiled version of AASB 11 applies to annual periods beginning on or after 1 January 2019. It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 14 February 2018 (see Compilation Details).","sortOrder":1}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This is a compiled version of AASB 11 as originally made in 2015, updated to incorporate amendments made up to February 2018. The scope remains consistent with the original intent: establishing principles for financial reporting of joint arrangements. The standard has not expanded beyond its original purpose of classification and accounting treatment for joint control situations."},"complexity_factors":["Requires classification judgment between joint operations and joint ventures based on rights and obligations, not just legal form","Extensive cross-references to other AASB standards including AASB 10 (Consolidated Financial Statements), AASB 128 (Investments in Associates and Joint Ventures), and AASB 12 (Disclosure of Interests in Other Entities)","Multiple defined terms including 'joint arrangement', 'joint control', 'joint operation', 'joint venture', 'joint venturer', 'party to a joint arrangement', 'separate vehicle', and 'unanimous consent'","Complex assessment of 'separate vehicles' (legally separate entities) versus contractual arrangements to determine classification","Detailed application guidance with numerous examples and flowcharts for classification decisions","Interaction with IFRS 11 (International Financial Reporting Standard) requiring alignment with international practice","Extensive disclosure requirements spanning nature, risks, and financial effects of arrangements"],"plain_english_summary":"This is **AASB 11**, an Australian accounting standard that sets out how businesses must report their involvement in **joint arrangements** — situations where two or more parties have joint control over something.\n\n**What it does:**\n- **Defines joint control**: When decisions about an arrangement require the unanimous consent of all parties sharing control.\n- **Classifies arrangements**: It splits joint arrangements into two types:\n  - **Joint operations**: Parties have rights to assets and obligations for liabilities (like a joint construction project). Each party recognises their share of assets, liabilities, revenue and expenses directly.\n  - **Joint ventures**: Parties have rights to the *net assets* (like a separate company they jointly own). These are accounted for using the **equity method** (where the investment is recorded at cost and adjusted for the investor's share of profits/losses).\n- **Requires disclosure**: Businesses must reveal the nature, extent and financial effects of their joint arrangements so investors can understand the risks and rewards.\n\n**Who it affects:**\n- Companies, not-for-profits and government entities that enter into contracts or agreements with other parties to share control of economic activities.\n- Investors and regulators who need transparent financial reporting.\n\n**Why it matters:**\nBefore this standard, accounting for joint arrangements was inconsistent. AASB 11 creates a clear framework so that if two companies build a pipeline together, for example, investors can see exactly who owns what, who owes what, and how profits are shared — preventing companies from hiding debt or overstating assets."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The supplied document is a compiled version of AASB 11 that explicitly \"incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 14 February 2018\" and sets an effective application date of annual periods beginning on or after 1 January 2019. That language indicates the original instrument has been amended and that the compiled version reflects those changes. The excerpt does not provide the original (pre-amendment) text, so it is not possible from the excerpt alone to detail precisely which elements of the Standard’s scope were altered by those amendments; only that amendments were incorporated into the compiled text (see compilation and effective-date statements)."},"complexity_factors":["The instrument is an accounting standard concerning joint arrangements — accounting standards are typically technical and require professional judgement (implied by title and nature of AASB standards).","It is a compiled version incorporating amendments up to and including 14 February 2018, which requires readers to track which amendments are included and whether later amendments exist (see: \"incorporates relevant amendments ... up to and including 14 February 2018\").","The AASB made the Standard under statutory authority (section 334 of the Corporations Act 2001), creating legal force for financial reporting — users must reconcile statutory application with accounting practice (see s334 reference).","The effective date rule (applies to annual periods beginning on or after 1 January 2019) imposes transitional/timing requirements on preparers and auditors.","Copyright and reproduction restrictions limit how the text may be redistributed or integrated into commercial products, adding a non-technical compliance/admin layer (see COPYRIGHT section).","The supplied excerpt does not include the Standard’s operative provisions, so understanding the full legal/operational implications requires consulting the complete compiled Standard and Compilation Details — increasing effort and potential for misapplication if readers rely solely on the excerpt."],"plain_english_summary":"### What this instrument changes, mechanically\n- This document is Accounting Standard AASB 11, titled “Joint Arrangements.” It is an accounting standard issued by the Australian Accounting Standards Board (AASB). The AASB made the Standard under section 334 of the Corporations Act 2001 on 24 July 2015 (see source line: “The Australian Accounting Standards Board made Accounting Standard AASB 11 ... under section 334 of the Corporations Act 2001 on 24 July 2015”).\n- The compiled version shown here applies to annual reporting periods beginning on or after 1 January 2019 and incorporates amendments made up to and including 14 February 2018 (see source line: “This compiled version of AASB 11 applies to annual periods beginning on or after 1 January 2019. It incorporates relevant amendments ... up to and including 14 February 2018”).\n\n### Who it affects\n- The standard affects entities that prepare financial statements for periods that start on or after 1 January 2019, because those reporting periods must apply the compiled Standard (see effective date above).\n- The AASB is the decision-maker that issued the Standard under statutory authority (see Corporations Act reference above). Contact details for enquiries are provided in the document (phone and e-mail are listed in the source). The document also contains copyright and reproduction restrictions applying to the text (see the COPYRIGHT section in the source). \n\n### Why it matters (stated purpose and practical implications)\n- By title, the Standard governs accounting for “Joint Arrangements”; that is the Standard’s subject as presented in the source. The source text itself does not reproduce the Standard’s operative accounting rules in the excerpt provided, but the title and statutory provenance indicate it sets required accounting treatment for arrangements described as joint arrangements.\n- Entities that are party to joint arrangements will need to apply the Standard when preparing their financial statements for the applicable periods; this creates a compliance obligation on those reporting entities (see effective date above). The AASB’s statutory role determines the legal force of the Standard for reports prepared under the Corporations Act (see s334 reference above).\n\n### Costs, incentives, discretion and implementation points (mechanical, source-grounded)\n- Who pays: preparers of financial statements (entities reporting for affected annual periods) bear the primary compliance costs of applying this Standard (inferred from the effective-date statement that the Standard \"applies to annual periods beginning on or after 1 January 2019\").\n- Who decides: the AASB issued the Standard under the Corporations Act (see s334 reference). That body decides content and timing of standards and their amendments.\n- Compliance burden and implementation risk: the compiled text incorporates amendments through 14 February 2018, which means affected entities and their advisers need to apply the consolidated/amended text for the periods from 1 January 2019 onward; maintaining systems, disclosures and accounting treatments consistent with the compiled version is an implementation requirement (see compilation and effective-date statements).\n- Legal/textual constraints: the document contains copyright terms limiting reproduction to certain non-commercial uses and requiring acknowledgement when reproduced in Australia; commercial or non-Australian reproduction requires separate permission (see COPYRIGHT section). That affects how the Standard text may be distributed and used by commercial advisers and software providers.\n\n### Trade-offs and concrete implementation considerations\n- The source excerpt shows the AASB’s statutory route (s334) and the effective date/amendment cutoff; those are concrete levers that determine when and which version of the Standard applies. Applying a compiled standard (with amendments up to a cut-off date) concentrates the compliance task on implementers to ensure they are using the correct consolidated text for reporting.\n- The source does not include the operative accounting rules, so this summary does not describe specific recognition, measurement or disclosure changes that the Standard may require. To assess costs, incentives, or effects on contract choice, ownership reporting, comparability, or audit work, users must consult the full operative text of AASB 11 and its Compilation Details (not reproduced in the excerpt provided)."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/aasb-11-joint-arrangements-july-2015","history":"/api/acts/aasb-11-joint-arrangements-july-2015/history","analysis":"/api/acts/aasb-11-joint-arrangements-july-2015/analysis","conflicts":"/api/acts/aasb-11-joint-arrangements-july-2015/conflicts","importantCases":"/api/acts/aasb-11-joint-arrangements-july-2015/important-cases","documents":"/api/acts/aasb-11-joint-arrangements-july-2015/documents"}}