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IFRS Guide > IAS 31

The International Accounting Standards Committee (IASC) released International Accounting Standard 31 (IAS 31) to address the topic of Interest in Joint Ventures.  For those companies that participate in joint ventures with others, the investment they have in the entity should be accounted for on their books in accordance with defined rules and regulations.  Specific rules exist, as defined within this standard, on how expenses and assets should be accounted for, which rest highly on the level of control the entity has over them.

IAS are principles based standards, rather than strict rules based standards that govern international accounting. IAS standards differ from IFRS standards in that they were introduced prior to 2001, whereas IFRS were produced after this date by the IASB, or the International Accounting Standards Board. When determining the hierarchy of these, the IAS is considered to be the building blocks in which the newer and more relevant IFRS are founded and therefore IFRS is more authoritative when these conflict.

Check out more high level explanations of the IASB IFRS in our Guide to IFRS International Financial Reporting Standards!