BC32 In the joint ventures project, the Board decided to extend the requirements and guidance in IAS 28 for the accounting for ‘downstream’ and ‘upstream’ transactions between an entity and its associate to the accounting for transactions between an entity and its joint venture.

BC33 In ED 9, the Board proposed to incorporate into the standard on joint arrangements the consensus of SIC‑13 Jointly Controlled Entities - Non-Monetary Contributions by Venturers. Because the Board relocated all the requirements for the accounting for joint ventures into IAS 28, the Board incorporated the consensus of SIC‑13 into IAS 28 and extended it to associates.

BC34 The Board noted that the consensus of SIC‑13 regarding non-monetary contributions made by a venturer [IFRS 11 Joint Arrangements, issued in May 2011, uses the term ‘joint venturers’ to designate parties that have joint control of a joint venture.] to a joint venture is consistent with IAS 28, except for the following aspect. SIC‑13 established three exceptions for the recognition of gains or losses attributable to the equity interests of the other parties. In response to comments raised by some respondents to ED 9, the Board redeliberated the need to incorporate into IAS 28 the exceptions included in SIC‑13 for the recognition by an entity of the portion of a gain or loss attributable to the interests of other unrelated investors in the investee.