BC70 The main changes from the exposure draft ED 9 are:

(a) IFRS 11 applies to all entities that have an interest in a joint arrangement. The scope exception in the exposure draft for venture capital organisations, or mutual funds, unit trusts and similar entities, including investment-linked insurance funds, has been removed and has been recharacterised as an exemption from the requirement to measure investments in joint ventures in accordance with the equity method.

(b) IFRS 11 replaces the term 'shared decisions' introduced by ED 9 with the term 'joint control'. As in IAS 31, 'joint control' is one of the features that, along with the existence of a contractual arrangement, defines 'joint arrangements'.

(c) IFRS 11 classifies joint arrangements into two types - 'joint operations' and 'joint ventures'. Each type of joint arrangement is aligned with a specific accounting requirement. ED 9 had classified joint arrangements into three types - 'joint operations', 'joint assets' and 'joint ventures'.

(d) IFRS 11 provides application requirements to assist entities in the classification of their joint arrangements. The IFRS requires an entity to determine the type of joint arrangement in which it is involved by considering its rights and obligations. In particular, the IFRS requires an entity to give consideration to the structure and legal form of the arrangement, to the terms agreed by the parties in the contractual arrangement and, when relevant, it should also consider other facts and circumstances.