IFRS 11 addresses the accounting and reporting standards for joint arrangements. A joint arrangement arises where two or more parties come together to jointly control an arrangement and agree on how it will operate. This can be structured either as a Joint Operation, where each party recognizes their proportionate share of assets, liabilities, income, and expenses, or as a Joint Venture, where the parties share profits and risks together and report their interests using the equity method. For instance, if Company A and Company B jointly control a manufacturing plant, they will report their involvement either as a joint operation or a joint venture, as determined by the agreement and the nature of their arrangement. IFRS 11 ensures that financial reporting reflects the economic substance of these collaborations accurately, which is crucial for stakeholders relying on the information. It replaces previous standards on joint venture arrangements to enhance clarity and consistency in reporting.