IFRS 11

Question 1

Joint arrangement

Answer 1

An arrangement of which two or more parties have joint control

Question 2

Joint control

Answer 2

The contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control

Question 3

joint arrangement characteristics

Answer 3

1. the parties are bound by a contractual arrangement, and
2. the contractual arrangement gives two or more of those parties joint control of the arrangement.
3. A joint arrangement is either a joint operation or a joint venture.

Question 4

Joint operation

Answer 4

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement

Question 5

Joint venture

Answer 5

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement

Question 6

Joint venturer

Answer 6

A party to a joint venture that has joint control of that joint venture

Question 7

Party to a joint arrangement

Answer 7

An entity that participates in a joint arrangement, regardless of whether that entity has joint control of the arrangement

Question 8

Separate vehicle

Answer 8

A separately identifiable financial structure, including separate legal entities or entities recognised by statute, regardless of whether those entities have a legal personality