130 Woodside Petroleum Ltd|Annual Report 2018
E.7 Joint arrangements (cont.)
Recognition and measurement
Joint arrangements are arrangements in which two or more
parties have joint control. Joint control is the contractual agreed
sharing of control of the arrangement which exists only when
decisions about the relevant activities require unanimous consent
of the parties sharing control. Joint arrangements are classified as
either a joint operation or joint venture, based on the rights and
obligations arising from the contractual obligations between the
parties to the arrangement.
To the extent the joint arrangement provides the Group with
rights to the individual assets and obligations arising from the joint
arrangement, the arrangement is classified as a joint operation, and
as such the Group recognises its:
• assets, including its share of any assets held jointly;
• liabilities, including its share of any liabilities incurred jointly;
• revenue from the sale of its share of the output arising from the
joint operation;
• share of revenue from the sale of the output by the joint
operation; and
• expenses, including its share of any expenses incurred jointly.
To the extent the joint arrangement provides the Group with
rights to the net assets of the arrangement, the investment
is classified as a joint venture and accounted for using the
equity method.
Joint arrangements acquired which are deemed to be carrying on
a business are accounted for applying the principles of AASB 3
Business Combinations. Joint arrangements which are not deemed
to be carrying on a business are treated as asset acquisitions.
E.8 Parent entity information
USm USm
Woodside Petroleum Ltd:
Current assets
Non-current assets
Non-current liabilities () ()
Net assets
Issued and fully paid shares
Shares reserved for employee share plans () ()
Employee benefits reserve
Foreign currency translation reserve
Retained earnings
Total shareholders' equity
Profit of parent entity
Total comprehensive income of parent entity
Guarantees
Woodside Petroleum Ltd and Woodside Energy Ltd (a subsidiary
company) are parties to a Deed of Cross Guarantee as disclosed
in Note E.9. The eect of the Deed is that Woodside Petroleum
Ltd has guaranteed to pay any deficiency in the event of winding
up of the subsidiary company under certain provisions of the
Corporations Act 2001. The subsidiary company has also given
a similar guarantee in the event that Woodside Petroleum Ltd is
wound up.
Woodside Petroleum Ltd has guaranteed the discharge by a
subsidiary company of its financial obligations under debt facilities
disclosed in Note C.2. Woodside Petroleum Ltd has guaranteed
certain obligations of subsidiaries to unrelated parties on behalf of
their performance in contracts. No liabilities are expected to arise
from these guarantees.
NOTES TO THE FINANCIAL STATEMENTS E. OTHER ITEMS
for the year ended 31 December 2018