Subject The subject of the study is limited to the sphere of corporate finance accounting under which transactions may be implemented to pool resources for the purpose of vertical integration and restructuring of business in joint arrangements. The increased activity in the field of pooling of capitals in business combination generated considerable interest among IFRS developers and many domestic accounting experts. The interest is determined by the content of IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities. Objectives The study aims to consider IFRS 11 Joint Arrangements for its adaptation to the national accounting practice, describe disclosure of equity interest in jointly controlled entities so that it reflects the economic substance of joint arrangements. Methods The study rests on the relationship contracts theory in joint arrangements, where relations of the investing group or company are of long-term nature. Results The study confirmed the view of developers of IFRS 11 that it is practicable to use the equity method in joint arrangements accounting. The method is based on the definition of joint control over assets and liabilities, income and expenses of a joint arrangement on the part of investors. Conclusions The equity accounting principle, when applied for joint arrangements, provides accounting information on the investor's share in net assets of the investee and its income and expenditure.
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