BC1 This Basis for Conclusions summarises the International Accounting Standards Board's considerations in reaching the conclusions in IFRS 11 Joint Arrangements. Individual Board members gave greater weight to some factors than to others.

BC2 The Board added the joint ventures project to its agenda as part of the project to reduce differences between International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP). The requirements of IFRS 11 were not deliberated by the US Financial Accounting Standards Board (FASB).

BC3 The Board focused its deliberations on enhancing the faithful representation of joint arrangements that an entity provides in its financial statements, by establishing a principle-based approach to accounting for joint arrangements, and by requiring enhanced disclosures. Even though the Board focused its efforts on improving the reporting of joint arrangements, the result is that the requirements of the IFRS achieve closer convergence with US GAAP than did IAS 31 Interests in Joint Ventures, which IFRS 11 supersedes.