Page 12 - FAC4862 slides JAs and Revenue CM

JOINT ARRANGEMENTS

Types of Joint Arrangements

• Joint venture (JV)

• Parties with joint control have rights to the net assets of the

arrangement

• Have a residual interest, like normal shareholders in an entity

• Referred to as ‘Joint venturers’

• Factors to consider (B15):

• Structure of joint arrangement

• When structured through a separate vehicle:

• Legal form

• Terms of contractual agreement, and

• Other facts and circumstances

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