3.3.1 ‘Venturer’ versus ‘investor’

In addition to ‘venturers’, there may well be other investors in the joint venture. In the absence of a definition of an ‘investor’ in FRS 102, it is clear from the definition of a ‘venturer’ that an investor in a joint venture must be ‘a party to a joint venture that does not have joint control over the joint venture’. This is illustrated by Example 13.1.

The interest of an ‘investor’ in a jointly controlled entity should be treated as either:

• an associate within the scope of Section 14 if the investor has significant influence over the entity (see Chapter 12); or
• otherwise as a financial asset within the scope of Section 11 – Basic Financial Instruments – or Section 12 – Other Financial Instruments Issues (see Chapter 10). [FRS 102.15.18].

3.3.2 Contractual arrangement

Contractual arrangements can be evidenced in several ways. An enforceable contractual arrangement is often, but not always, in writing (although we expect unwritten agreements to be rare in practice). Statutory mechanisms can create enforceable arrangements, either on their own or in conjunction with contracts between the parties. A contractual arrangement may be incorporated into the articles or other formation documents of the entity.

The contractual arrangement sets out the terms upon which the parties agree to share control over the activity that is the subject of the arrangement. IFRS 11 provides some relevant guidance on the aspects generally specified in the contractual arrangement for a joint arrangement which could equally be applied to a joint venture under FRS 102:

1. the purpose, activity and duration of the joint arrangement;
2. how the members of the board of directors, or equivalent governing body, of the joint arrangement, are appointed;
3. the decision-making process: the matters requiring decisions from the parties, the voting rights of the parties and the required level of support for those matters. The decision-making process reflected in the contractual arrangement establishes joint control of the arrangement;
4. the capital or other contributions required of the parties; and
5. how the parties share assets, liabilities, revenues, expenses or profit or loss relating to the joint arrangement. [IFRS 11 Appendix B.4].

3.3.3 Joint control and unanimous consent

In order to establish whether joint control of an arrangement exists, it is necessary to establish whether the contractual arrangement gives all the parties to that arrangement (or a group of the parties) control of the arrangement in the collective sense. That means the parties (or a group thereof) must need to act together to direct the strategic, financial and operating policies of the arrangement. It follows that there must be at least two parties for there to be joint control.

Section 15 includes the specific requirement for ‘unanimous consent’ in the definition of joint control. Unanimous consent essentially means that any party to the arrangement can prevent any of the other parties, or group of the other parties, from making decisions of a strategic, financial or operating nature without its consent. This ensures that no single party can control the arrangement. This means, for example, that none of the parties to the contractual arrangement should have a casting vote that enables it to resolve a deadlock, as that would constitute a form of unilateral control. [FRS 102.15.2].

Care is required in situations where a contractual arrangement may identify one venturer as the operator or manager of the joint venture. The operator does not control the joint venture if it acts within the financial and operating policies agreed by the venturers in accordance with the contractual arrangement and delegated to the operator. If, however, the operator does have the power to govern (i.e. not merely to execute) the financial and operating policies of the economic activity, the operator controls the venture and the venture is a subsidiary of the operator and not a joint venture.

3.3.4 Potential voting rights

An entity may own share warrants, share call options, debt or equity instruments that are convertible into ordinary shares, or other similar instruments that have the potential, if exercised or converted, to give the entity voting power or reduce another party's voting power over the financial and operating policies of another entity (potential voting rights).

Potential voting rights are not directly addressed in Section 15. Nevertheless, the existence of potential voting rights may be relevant to an assessment of joint control, as explained in Section 9, since control can be achieved by having options or convertible instruments that are currently exercisable. [FRS 102.9.6]. However, the contractual arrangement giving rise to joint control will tend to override relative ownership interests (voting and potential voting rights). This is an issue that will need to be addressed in the light of individual facts and circumstances.

3.3.5 Types of joint venture

Section 15 explains that joint ventures can take one of three forms, all sharing the common characteristics of an underlying contractual arrangement and joint control. The three forms are:

• jointly controlled operations (see 3.4 below);
• jointly controlled assets (see 3.5 below); and
• jointly controlled entities (see 3.6 below).

3.4.1 Definition

Jointly controlled operations arise when a joint venture is established that does not involve the formation of a separate corporation, partnership or other entity or financial structure that exists separately from the venturers. Instead the joint venture uses assets and other resources of the venturers. In such a case each venturer will use its own property, plant and equipment and carries its own inventories. It also incurs its own expenses and liabilities and raises its own finance, which represent its own obligations. The joint venture activities may be carried out by the venturer's employees alongside the venturer's similar activities. The joint venture agreement usually provides a means by which the revenue from the sale of the joint product and any expenses incurred in common are shared among the venturers. [FRS 102.15.4].

An example of a jointly controlled operation might be where two or more venturers combine their operations, resources and expertise in order to jointly manufacture, market and distribute a particular product. Each venturer undertakes a different part of the manufacturing process and bears its own costs. Revenue from the sale of the product is then shared on the basis of the contractual arrangement. There is no separate entity conducting the business of manufacturing and selling the product. It is merely an extension of the venturers' existing businesses.

3.4.2 Accounting requirements for jointly controlled operations

In respect of its interests in jointly controlled operations, a venturer recognises in its financial statements:

• the assets that it controls and the liabilities that it incurs; and
• the expenses that it incurs and its share of the income that is earns from the sale of goods or services by the joint venture. [FRS 102.15.5].

As the assets, liabilities, income and expenses will already be reflected in the individual financial statements of the venturer (including the separate financial statements of a venturer that is a parent) then no adjustments or other consolidation procedures are required in respect of these items if the venturer presents consolidated financial statements.

When venturers are funding the operations of a jointly controlled operation they may need to account for a receivable or payable from other venturers, as illustrated in Example 13.2 below.

3.5.1 Definition

Jointly controlled assets arise in circumstances where one or more assets are contributed to or acquired for the purpose of the joint venture and those assets are jointly controlled and often jointly owned. [FRS 102.15.6].

The assets are used to obtain benefits for the venturers, who may each take a share of the output from the assets and bear an agreed share of the expenses incurred. Such ventures do not involve the establishment of an entity or financial structure separate from the venturers themselves, so that each venturer has control over its share of future economic benefits through its share in the jointly controlled assets.

Joint ventures of this type are particularly common in extractive industries. For example, a number of oil companies may jointly control and operate an oil pipeline. Each venturer uses the pipeline to transport its own product in return for which it bears an agreed proportion of the operating expenses of the pipeline. Another example of a jointly controlled asset could be that two entities jointly control a commercial property, each taking a share of the rents received and bearing a share of the expenses.

3.5.2 Accounting requirements for jointly controlled assets

In respect of its interest in a jointly controlled asset, a venturer recognises in its financial statements:

• its share of the jointly controlled assets, classified according to their nature (i.e. a share in a jointly controlled pipeline should be shown within property, plant and equipment rather than as an investment);
• any liabilities that it has incurred (e.g. those it has incurred in financing its share of the assets);
• its share of any liabilities incurred jointly with the other venturers in relation to the joint venture;
• any income from the sale or use of its share of the output of the joint venture, together with its share of any expenses incurred by the joint venture; and
• any expenses that it has incurred in respect of its interest in the joint venture (e.g. those relating to financing the venturer's interest in the assets and selling its share of the output). [FRS 102.15.7].

As with jointly controlled operations, the assets, liabilities, income and expenses will already be reflected in the individual financial statements of the venturer (including the separate financial statements of a venturer that is a parent), therefore no adjustments or other consolidation procedures are required in respect of these items if the venturer presents consolidated financial statements. Separate accounting records may be limited to a record of the expenses incurred in common, and ultimately borne by the venturers according to their agreed shares. Similarly, financial statements may not be prepared for the joint venture itself, although the venturers may prepare management accounts in order to assess the performance of the joint venture.

3.6.1 Definition

Section 15 defines a jointly controlled entity as ‘a joint venture that involves the establishment of a corporation, partnership or other entity in which each venturer has an interest’. The entity would operate in the same way as other entities except that the venturers would have joint control over the entity and its economic activities by virtue of the existence of a contractual arrangement between them. [FRS 102.15.8].

A jointly controlled entity controls the assets of the joint venture, incurs liabilities and expenses and earns income. It manages the joint venture and may enter into contracts in its own name and raise finance for the purposes of the joint venture activity. Each venturer is entitled to a share of the results of the jointly controlled entity based on the requirements in the joint venture agreement.

There are a number of different considerations for the accounting for interests in jointly controlled entities depending on whether the venturer is a parent or not, and if a parent, the financial statements being prepared. These are discussed in the sections that follow.

3.6.2 Venturer that is not a parent

Where a venturer is an entity that is not a parent and hence only prepares individual financial statements, in those financial statements it has a choice of how to account for all of its interests in jointly controlled entities. It can apply either:

1. the cost model (see 3.6.2.A below);
2. fair value with changes in fair value recognised in other comprehensive income (unless reversing a revaluation decrease of the same investment previously recognised in profit or loss, in which case the revaluation increase is recognised in profit or loss, or where a revaluation decrease exceeds increases previously recognised in respect of the same investment, in which case the excess is recognised in profit or loss) (see 3.6.2.B below); or
3. fair value with changes in fair value recognised in profit or loss. [FRS 102.15.9].

In terms of the option to carry interests in jointly controlled entities at fair value through profit or loss or fair value through other comprehensive income, fair value in that context should be determined by reference to the guidance in Appendix 2 to Section 2 – Concepts and Pervasive Principles, (see Chapter 4 at 3.13). [FRS 102.15.9(d)].

There is no option in Section 15 to use the equity method of accounting in individual financial statements (this option exists under IFRS) even though permitted by the Regulations (see 4.2 below). However, the individual financial statements of a venturer that is not a parent must disclose summarised financial information about its investments in jointly controlled entities, along with the effect of including those investments as if they had been accounted for using the equity method. Investing entities that are exempt from preparing consolidated financial statements, or would be exempt if they had subsidiaries, are exempt from this requirement. [FRS 102.15.21A].

3.6.3 Venturer that is a parent

3.7.1 Overview

The equity method is explained in Section 14. It is described as a method of accounting whereby the investment is initially recognised at transaction price (including transaction costs) and is subsequently adjusted to reflect the investor's share of:

• profit or loss;
• other comprehensive income; and
• equity of the associate. [FRS 102.14.8].

The investor's share of the investee's profit or loss is recognised in the investor's profit or loss. [FRS 102.5.5, 6 Sch 20(3)]. The investor's share of the investee's other comprehensive income is recognised in the investor's statement of comprehensive income. [FRS 102.5.5A, 6 Sch 20(3)].

The requirements of the equity method described above should be applied to jointly controlled entities, substituting ‘joint control’ for ‘significant influence’ and ‘jointly controlled entity’ for ‘associate’. [FRS 102.15.13].

3.7.2 Summary of the equity method

The equity method is discussed in detail in Chapter 12. The key aspects of the equity method as applicable to an investment in a jointly controlled entity are therefore as follows: [FRS 102.14.8]

• a venturer should commence equity accounting for a jointly controlled entity from the date it begins to have joint control over the entity (see Chapter 12 at 3.3.2.A);
• distributions received from the jointly controlled entity reduce the carrying amount of the investment. Adjustments to the carrying amount may also be required as a consequence of changes in the jointly controlled entity's equity arising from items of other comprehensive income (see Chapter 12 at 3.3.2.B);
• in applying the equity method, the proportionate share of the jointly controlled entity to be accounted for, in many cases, will be based on the venturer's ownership interest in the ordinary shares of the entity. A venturer should measure its share of profit or loss and other comprehensive income of the jointly controlled entity as well as its share of changes in the jointly controlled entities' equity based on present ownership interests. Those measurements should not reflect the possible exercise or conversion of potential voting rights (see Chapter 12 at 3.3.2.C);
• on acquisition of the investment in a jointly controlled entity a venturer accounts for any difference (whether positive or negative) between the cost of acquisition and its share of the fair values of the net identifiable assets of the jointly controlled entity in accordance with Section 19, as implicit goodwill (see Chapter 17 at 3.9). A venturer adjusts its share of the jointly controlled entity's profits or losses after acquisition to account for additional depreciation or amortisation of the jointly controlled entity's depreciable or amortisable assets (including goodwill) on the basis of the excess of their fair values over their carrying amounts at the time the investment was acquired (see Chapter 12 at 3.3.2.D). If negative goodwill arises (the acquirer's interest in the net amount of the associate's identifiable assets, liabilities and provisions for contingent liabilities exceeds the cost of the investment), the acquirer must (after reassessing the identification and measurement of the acquiree's assets and liabilities and the measurement of the cost of the combination) recognise the excess up to the fair value of the non-monetary assets acquired in the jointly controlled entity's profit or loss in the periods in which the non-monetary assets are recovered. Any excess exceeding the fair value of the non-monetary assets acquired shall be recognised in profit or loss in the periods expected to be benefited. [FRS 102.19.24]. If the interest in the jointly controlled entity is acquired on a piecemeal basis then the approach to such acquisitions is discussed, in the context of equity accounting, in Chapter 12 at 4.1.2 to 4.1.4;
• if there is an indication that an investment in a jointly controlled entity may be impaired a venturer shall test the entire carrying amount of the investment for impairment in accordance with Section 27 (see Chapter 24) as a single asset. Any goodwill included as part of the carrying amount of the investment in the jointly controlled entity is not tested separately for impairment but, rather, as part of the test for impairment of the investment as a whole (see Chapter 12 at 3.3.2.E);
• the venturer eliminates unrealised profits and losses resulting from upstream (jointly controlled entity to investor) and downstream (investor to jointly controlled entity) transactions to the extent of the venturer's interest in the jointly controlled entity. Unrealised losses on such transactions may provide evidence of an impairment of the asset transferred (see Chapter 12 at 3.3.2.F);
• in applying the equity method, the investor uses the financial statements of the jointly controlled entity as of the same date as the financial statements of the investor unless it is impracticable to do so. If it is impracticable, the investor uses the most recent available financial statements of the jointly controlled entity, with adjustments made for the effects of any significant transactions or events occurring between the accounting period ends (see Chapter 12 at 3.3.2.G);
• if the jointly controlled entity uses accounting policies that differ from those of the investor, the investor adjusts the jointly controlled entity's financial statements to reflect the investor's accounting policies for the purpose of applying the equity method unless it is impracticable to do so (see Chapter 12 at 3.3.2.H);
• if a venturer's share of losses of a jointly controlled entity equals or exceeds the carrying amount of its investment in the jointly controlled entity, the venturer discontinues recognising its share of further losses. After the venturer's interest is reduced to zero, the venturer recognises a provision for additional losses (see Section 21 – Provisions and Contingencies) only to the extent that the venturer has incurred legal or constructive obligations or has made payments on behalf of the jointly controlled entity. If the jointly controlled entity subsequently reports profits, the venturer resumes recognising its share of those profits only after its share of the profits equals the share of losses not recognised (see Chapter 12 at 3.3.2.I); and
• a venturer discontinues the use of the equity method from the date that joint control ceases. The subsequent accounting depends on the nature of any retained investment. If the investment becomes a subsidiary (because control is obtained), it will be accounted for in accordance with Section 19 (i.e. a step-acquisition, see Chapter 17 at 3.11). If the investment becomes an associate, it will be accounted for in accordance with Section 14 (i.e. it will continue to be accounted for under the equity method, see Chapter 12). Otherwise, on a full or partial disposal, a profit or loss will be recognised based on the difference between the disposal proceeds and the carrying amount relating to the proportion of the jointly controlled entity disposed of. Any retained investment should be accounted for as a financial asset in accordance with Section 11 or Section 12 (see Chapter 12 at 3.3.2.J for further discussion).

3.8.1 Background

It is common for venturers to transact with the joint venture, in particular on the formation of the venture. Typical transactions include:

• the venturers contribute cash to the venture in proportion to their agreed relative shares. The venture then uses some or all of the cash to acquire assets from the venturers for use in the venture;
• the venturers contribute other assets (or a mixture of cash and other assets) to the joint venture with fair values in proportion to the venturers' agreed relative shares in the venture; and
• the venturers contribute other assets to the joint venture with fair values not in proportion to the venturers' agreed relative shares. Cash ‘equalisation’ payments are then made between the venturers so that the overall financial position of the venturers corresponds to their agreed relative shares in the venture.

3.8.2 Requirements

When a venturer contributes or sells assets to a joint venture, Section 15 requires that the recognition of any portion of a gain or loss from the transaction should reflect the substance of the transaction. While the assets are retained by the joint venture, and provided the venturer has transferred the significant risks and rewards of ownership, the venturer should only recognise that portion of the gain or loss that is attributable to the interests of the other venturers in its consolidated financial statements. However, the venturer should recognise the full amount of any loss when the contribution or sale provides evidence of an impairment loss. [FRS 102.15.16].

These requirements are illustrated in the following examples:

1. £8 million received from C less £5 million contributed to C.
2. £5 million initial investment in C, less £1 million (share of profit eliminated – see (4) below. In effect, this treatment represents that A still holds 50% of the property at its original carrying value to A (50% of £6 million = £3 million) plus 50% of the cash held by the joint venture (50% of £2 million = £1m)
3. Derecognition of A's original property.
4. Gain on sale of property £2 million (£8 million received from C less £6 million carrying value = £2 million), less 50% eliminated (so as to reflect only profit attributable to interest of other venturer B) = £1 million.

In Example 13.3 above, the elimination of A's share of the profit has been made against the asset that was the subject of the transaction and now held by A. This is based on our suggested approach for the elimination of unrealised profits and losses resulting from downstream transactions (investor to jointly controlled entity) under Section 14, discussed in Chapter 12 at 3.3.2.F. It is also consistent with the treatment where a venture exchanges a non-monetary asset for an interest in another entity that becomes a jointly controlled entity of a venture (see 3.9 below).

1. £8 million received from C less £5 million contributed to C.
2. £5 million initial investment in C. In effect, this treatment represents that A still holds 50% of the property at the current fair value (50% of £8 million = £4 million) plus 50% of the cash held by the joint venture (50% of £2 million = £1m).
3. Loss on sale of property £2 million (£8 million received from C less £10 million carrying value = £2 million) not adjusted since the transaction indicated an impairment of the property. In effect, it is the result that would have been obtained if A had recognised an impairment charge immediately prior to the sale and then recognised no gain or loss on the sale.
4. Derecognition of A's original property.

When a venturer purchases an asset from a joint venture, the venturer should not recognise its share of the profits of the joint venture from the transaction until it resells the assets to an independent party or otherwise realises its carrying amount. For example on an item of property, plant and equipment, this will occur as the asset is depreciated or written down for impairment; therefore the appropriate proportion of the previously unrecognised profit can be recognised as the asset's carrying value is reduced. A venturer should recognise its share of the losses resulting from these transactions in the same way as profits except that losses shall be recognised immediately when they represent an impairment loss. [FRS 102.15.17].

These requirements are illustrated in the following examples:

1. £12 million paid to C less elimination of A's share of the profit made by C £2 million (50% of [£12 million sales proceeds less £8 million cost to C]).
2. £5 million initial investment in C plus profit on sale of property by C that is attributable to B). In effect, this treatment represents A's 50% interest in the cash held by the joint venture (50% of £14 million).
3. £5 million cash contributed to C plus £12 million consideration paid for property.

In Example 13.5 above, the elimination of A's share of the profit made by C has been made against the asset that was the subject of the transaction and now held by A. This is based on our suggested approach for the elimination of unrealised profits and losses resulting from upstream transactions (jointly controlled entity to investor) under Section 14, discussed in Chapter 12 at 3.3.2.F.

1. £7 million paid to C not adjusted since the transaction indicated an impairment of C's asset.
2. £5 million initial investment in C less A's 50% share of loss in C's books of £1 million (£8 million cost of property less £7 million proceeds of sale). In effect, it is the result that would have been obtained if C had recognised an impairment charge immediately prior to the sale and then recognised no gain or loss on the sale.
3. Loss in C's books is £1 million (£8 million cost of property less £7 million proceeds of sale). A recognises its 50% share because the transaction indicates an impairment of the asset. In effect, it is the result that would have been obtained if C had recognised an impairment charge immediately prior to the sale and then recognised no gain or loss on the sale.
4. €5 million cash contributed to C plus €7 million consideration for property.

It may be that transactions occur between a venturer and a joint venture in assets, such as inventories, which are destined for onward sale in the normal course of business by the buying party. The accounting adjustments required are the same as for similar transactions between an investor and its associate – see Examples 12.6 and 12.7 in Chapter 12 at 3.3.2.F.

3.8.3 Loans and borrowings between the venturer and joint ventures

Section 15's requirement to eliminate partially unrealised profits or losses on transactions with joint ventures is expressed in terms of transactions involving the transfer of assets. This raises the question of whether this requirement is generally intended to apply to items such as interest paid on loans between joint ventures and the reporting entity.

In our view, the requirement for partial elimination of profits or losses does not apply to items such as interest paid on loans and borrowings between the reporting entity and its joint ventures, since such loans do not involve the transfer of assets giving rise to gains or losses. Moreover, the loans are not normally regarded as part of the venturer's share of the net assets of the joint venture, but as separate transactions, except in the case of loss-making joint ventures, where interests in long-term loans may be accounted for as if they were part of the reporting entity's equity investment in determining the carrying value of the joint venture against which losses may be offset.

However, if the joint venture has capitalised the borrowing costs then the investor would need to eliminate a relevant share of the profit, in the same way it would eliminate a share of the capitalised management or advisory fees charged to a joint venture.

4.3.1 Consolidated financial statements

The Regulations require that equity accounted investments in jointly controlled entities are presented as fixed asset investments in the balance sheet. [6 Sch 20]. When ‘adapted formats’ (see Chapter 6 at 5.1) are used, investments in jointly controlled entities must be shown as a separate balance sheet item and distinguished between current and non-current items. [FRS 102.4.2A].

Goodwill relating to a jointly controlled entity is included in the carrying amount of the investment. [FRS 102.15.13].

There is no guidance in FRS 102 as to how long term interests (such as long term loans for which no payment is intended in the foreseeable future) in jointly controlled entities should be presented and therefore an entity must make an accounting policy choice as to how such interests are presented. Entities frequently make loans to jointly controlled entities, the terms of which are repayable on demand, but there is no intention of repayment in the foreseeable future. In these circumstances, for entities applying Schedule 1 to the Regulations, management will need to exercise judgement in determining whether such a loan is a debtor or a fixed asset investment in nature (see Chapter 6 at 5.3.4). For entities applying the adapted formats, such loans will need to be classified as appropriate between current or non-current assets (see Chapter 6 at 5.1.1).

In the profit and loss account, for entities applying the formats of Schedule 1 to the Regulations, income from interests in joint controlled entities should be shown as one line item in the profit and loss account. [6 Sch 20]. For entities applying the adapted formats, the share of the profit or loss of associates and jointly controlled entities accounted for using the equity method must be included as a single line item in the profit and loss account. [FRS 102.5.5B]. The format of the profit and loss account and balance sheet under FRS 102 are discussed further in Chapter 6.

The Regulations also require that the following information must be given where an undertaking included in the consolidation has an interest in an ‘associated undertaking’ (which, as discussed at 4.1 above, will also be relevant for equity accounted jointly controlled entities):

• the name of the jointly controlled entity;
• the country in which the jointly controlled entity is incorporated for those incorporated outside the United Kingdom;
• the address of the registered office of the jointly controlled entity;
• the identity and proportion of the nominal value of each class of share held, disclosing separately those held by the:
  • parent company; and
  • group. [4 Sch 19].

4.3.2 Individual financial statements

In individual financial statements the Regulations require additional disclosures in respect of significant holdings in undertakings, other than subsidiary entities. A holding is deemed significant if:

• it amounts to 20% or more of the nominal value of any class of shares in the undertaking; or
• the amount of the holding as stated in the company's individual accounts exceeds 20% of the stated net assets of the company. [4 Sch 4].

In practice, this definition will capture most investments in jointly controlled entities. The resulting disclosures in individual accounts are:

• the name of each jointly controlled entity;
• the address of the registered office of each jointly controlled entity;
• the address of each jointly controlled entity's principal place of business if unincorporated; and
• the identity and proportion of the nominal value of each class of share held. [4 Sch 5].

Additional disclosure would also be required in respect of each jointly controlled entity detailed above of:

• the aggregate amount of the capital and reserves of each entity; and
• the profit or loss for the year of each entity. [4 Sch 6].

The additional disclosures just mentioned are not required when the jointly controlled entity is not required to publish its balance sheet anywhere in the world and the holding is less than 50% of the nominal value of the shares (or the information is not material). [4 Sch 6].

A parent is not required to provide the additional disclosures of paragraph 6 of Schedule 4 in the Regulations in its individual financial statements if it is exempt under sections 400 or 401 of the Act from the requirement to prepare group accounts and the company discloses, in the notes to its accounts, the aggregate investment in the relevant jointly controlled entities determined by way of the equity method of valuation. [4 Sch 13].

A parent that prepares consolidated financial statements and discloses the information described at 4.3.1 above in respect of its jointly controlled entities is not required to give the above disclosures in its individual financial statements. [4 Sch 4].