BC45O The Board was informed that entities, on obtaining joint control of a business that is a joint operation, accounted for their previously held interest in the joint operation differently. In particular, there were different views on whether an entity applied the principles for accounting for a business combination achieved in stages to its previously held interest when it obtained joint control.
BC45P The Board observed that although such a transaction changes the nature of an entity's interest in a joint operation, it does not result in a change in the group boundaries. In this respect, the transaction is similar to an investment in an associate becoming an investment in a joint venture and vice versa. The Board noted that paragraph 24 of IAS 28 prohibits an entity from remeasuring its previously held interest in those circumstances. The Board also observed that remeasuring a previously held interest in a joint operation could conflict with the requirement in IFRS 11 for an entit
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