ScopeScope

Scope

1 This Standard shall be applied in accounting for interests in joint ventures and the reporting of joint venture assets, liabilities, income and expenses in the financial statements of venturers and investors, regardless of the structures or forms under which the joint venture activities take place. However, it does not apply to venturers’ interests in jointly controlled entities held by:

(a) venture capital organisations; or

(b) mutual funds, unit trusts and similar entities including investment-linked insurance funds

that are measured at fair value through profit or loss in accordance with AASB 9 Financial Instruments. An entity shall measure such investments at fair value through profit or loss in accordance with AASB 9. A venturer holding such an interest shall make the disclosures required by paragraphs 55 and 56.

2 A venturer with an interest in a jointly controlled entity is exempted from paragraphs 30 (proportionate consolidation) and 38 (equity method) when it meets the following conditions:

(a) the interest is classified as held for sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations; or

(b) the exception in paragraph 10 or Aus10.1, as modified by paragraph Aus10.2, of AASB 127 Consolidated and Separate Financial Statements allowing a parent that also has an interest in a jointly controlled entity not to present consolidated financial statements is applicable; or

(c) all of the following apply:

(i) the venturer is a wholly-owned subsidiary, or is a partially-owned subsidiary of another entity and its owners, including those not otherwise entitled to vote, have been informed about, and do not object to, the venturer not applying proportionate consolidation or the equity method;

(ii) the venturer’s debt or equity instruments are not traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets);

(iii) the venturer did not file, nor is it in the process of filing, its financial statements with a securities commission or other regulatory organisation, for the purpose of issuing any class of instruments in a public market; and

(iv) the ultimate Australian or any intermediate parent of the venturer produces consolidated financial statements available for public use that comply with International Financial Reporting Standards.

Aus2.1 Notwithstanding paragraph 2(c)(iv), a venturer that meets the criteria in paragraphs 2(c)(i), 2(c)(ii) and 2(c)(iii) need not apply proportionate consolidation or the equity method in accounting for an interest in a jointly controlled entity if its ultimate or any intermediate parent produces consolidated financial statements available for public use and: