Joint arrangements Flashcards
1
Q
Joint arrangements (IFRS 11)
Definition
A
Joint control of an entity under contractual agreement, unanimous consent
2
Q
Types of joint arrangements
A
Joint venture - A separate entity is set up and each venture party has equal interest. Ownership then represents net assets. Accounted for using equity accounting.
Joint operation - no seperate legal entity created. Accounting done through recording their share (% holding) of assets and liabilities and revenue and costs.
