IFRS 11, change in policy from jointly controlled operation to joint venture following IFRIC agenda decision


LafargeHolcim Ltd – Annual report – 31 December 2015

Industry: construction

  1. Accounting policies (extract)

Change in accounting policies (extract)

On April 9, 2015, the IFRIC published an agenda decision concerning the classification of joint arrangements under IFRS 11 Joint Arrangements. As a result of the clarifications regarding rights to the assets of a joint arrangement through other facts and circumstances, the Group was unable to continue to account for Cement Australia as a joint operation, since LafargeHolcim does not have an obligation to acquire substantially all of the economic benefits (i.e. output) from Cement Australia. As a result, LafargeHolcim changed its accounting policy for Cement Australia in the second quarter 2015 and reclassified its investment in Cement Australia as a joint venture and applied the equity accounting method. This accounting policy change has been applied retrospectively and its effect on the comparative information (restated amounts) presented for each financial statement line item is set out in the following tables.