Australia

Details

  • Service: Audit, Accounting Advisory Services, International Financial Reporting Standards (IFRS)
  • Industry: Energy & Natural Resources, Mining
  • Type: Business and industry issue
  • Date: 1/03/2012

Impact on mining companies: Changes to joint venture accounting 

The financial statements of many mining companies could look different in the future as a result of the changes to the accounting for joint arrangements. This could affect key performance measures and ratios for companies in the sector, which raises the question of how such changes should be communicated to investors and other stakeholders.

The number and variety of joint arrangements in the mining sector means that planning for transition in advance of the 1 January 2013 effective date is of particular importance.

 

Key insights

  • IFRS 11 removes the option to apply proportionate consolidation
  • Change to the definitions may mean that some jointly controlled entities will be accounted for on a line-by-line basis under the new standard
  • The considerations for determining the form of a joint arrangement have changed.

 

 

Mining

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