1) Accounting method
According to the 2013 annual reports of FLT, Fairfax, Senex and Wotif, they all use equity method in accordance with AASB 131. They have not adopted AASB11 and will apply this standard on 1 July 2013.
2) Identification and disclosure
All of the four companies comply with AASB 131.
FLT, Fairfax and Wotif have jointly controlled entities that can be separate identified from its separate joint venture (AASB 131.54 and AASB 131.55). They disclosed a summarized presentation of all the jointly controlled and associated entities’ assets, liabilities, revenue and expense items (131.56 and AASB 131.57) (FLT Annual Report 2013 Note1 b (iii), Fairfax Annual Report 2013, Note 1 (z), Wotif Annual Report 2013, Note 2(c)). Similarly, in the same industry company with these three companies, they are also the JCE.
Senex only has interest in the jointly controlled operations, by recognizing its interest in assets and liabilities. It also recognized the expenses that it incurs and its share of the income that it earns from the sale of goods or services, it complies with AASB 131.56. The company disclosed the share of joint venture revenue, expenses, and shares of JV assets, liabilities, as well as commitments (Senex Annual Report 2013, Note 2 (m)). For the Woodside in the same industry, it applied to AASB 11 in this financial period, it is classified as joint operation.
3) Reasons for the differences among Joint Arrangements/Joint Ventures
All of the four companies using the equity method because with the removal of proportionate consolidation method, the equity accounting is now the only method for the subsequent accounting for the joint ventures (AASB 128).
The reason for the different disclosures between jointly controlled entities and jointly controlled operations are mainly because they are from the different
