Disposal in immediately preceding period
A calendar-year entity had an interest in a jointly controlled entity for which it applied proportionate consolidation. IFRS 11 is required to be applied for the entity’s annual period beginning 1 January 2013. The jointly controlled entity is a joint venture under IFRS 11 and the equity method is applied.
In 2012, the entity lost joint control of the jointly controlled entity. For a portion of the immediately preceding period, the entity had an interest in a joint venture. However, for the current reporting period (2013), the entity did not have any interest in the joint venture.
As discussed at below, the entity is required to recognise its investment in the joint venture as at the beginning of the immediately preceding period (1 January 2012). The entity would account for the investment in the joint venture using the equity method until the date the entity disposed of the investment was disposed.