BC13 The IFRS should be applied by all entities that are a party to a joint arrangement. The IFRS does not change the two essential characteristics that IAS 31 required arrangements to have in order to be deemed 'joint ventures', ie that a contractual arrangement that binds the parties to the arrangement exists, and that the contractual arrangement establishes that two or more of those parties have joint control of the arrangement.
BC14 The Board believes that the new definition of control and the application requirements to assess control in IFRS 10 Consolidated Financial Statements will assist entities in determining whether an arrangement is controlled or jointly controlled, and in that respect it might cause entities to reconsider their previous assessment of their relationship with the investee. Despite the changes that these reassessments might cause, the Board believes that arrangements that were within the scope of IAS 31 would generally also be within the scope of IFRS 11.