1. International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IFRS Foundation or the IASB Joint Arrangements and Related Disclosures © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Effect analysis 2011

2. Effect analysis – Aspects considered Joint venture activity (slides 3-4) 2 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Financial statement effects (slides 5-7) Cost-benefit analysis (CBA) (slide 8) Convergence with US GAAP (slide 9)

3. Joint venture activity: frequency, countries, industries 1 3 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org (1): Sources: Thomson Financial SDC Platinum Alliances/Joint Ventures database – Sviatoslav A Moskalev, R Bruce Swensen. Joint Ventures around the globe from 1990-2000: Forms, types, industries, countries and ownership patterns.

4. Joint venture activity: structures 2 4 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org (2): Sources: Thomson Financial SDC Platinum Alliances/Joint Ventures database – Sviatoslav A Moskalev, R Bruce Swensen. Joint Ventures around the globe from 1990-2000: Forms, types, industries, countries and ownership patterns.

5. Financial statement effects: current accounting methods 3 5 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org (3): Source: KPMG IFRG Limited and Dr Isabel von Keitz. The Application of IFRS: Choices in Practice – December 2006

6. Financial statement effects: overview of the effects 6 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

7. Financial statement effects: other effects analysed 7 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org The Effect analysis document also considers: Effects on the entities’ financial statements (ie statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows). Effect of the accounting change on return on capital and its components (ie profitability, assets turnover and financial leverage). Effects expected on the arrangements analysed during the outreach which covered different industries.

8. Cost-benefit analysis (CBA) 8 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org The areas identified as the areas that will represent the highest costs and benefits for those entities affected by the implementation of IFRS 11 are as follows: Classification of the types of joint arrangement Transition provisions Additional disclosures Overall assessment is that the benefits brought by IFRS 11 will outweigh its related costs.

9. US GAAP Convergence Joint arrangements structured through a separate vehicle Joint arrangements not structured through a separate vehicle Differences in the definitions of ‘joint arrangement’ and ‘joint control’ will still persist. Corporations Unincorporated entities Convergence will increase but differences will remain for arrangements whereby the parties have rights to the assets and obligations for the liabilities. Accounting for specialised industries will probably fully converge. Accounting for the other industries might not converge. Accounting for entities’ undivided interests in assets and liabilities will continue to converge, but there will be no convergence for specific industries in which the parties having undivided interests may apply the equity method under US GAAP. 9

10. Questions or comments? Expressions of individual views by members of the IASB and its staff are encouraged. The views expressed in this presentation are those of the presenter. Official positions of the IASB on accounting matters are determined only after extensive due process and deliberation. 10 © 2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org