Page 13 - FAC4862 slides JAs and Revenue CM

JOINT ARRANGEMENTS

Types of Joint Arrangements

• Note: who has rights to assets and obligations for

liabilities of arrangement?

• 1. Structure of arrangement

• If not structured through separate legal entity, then JO (B16)

• Contractual agreement defines terms

• E.g. sharing of asset

• If separate legal entity, consider items in point 2

• 2. Separate legal entity

• Could be JO or JV (B19)

• Depends on rights to assets and obligations for liabilities (B20)

• Legal form

• May lead to recognition of arrangement as separate entity

• E.g. establish (Pty) Ltd - Legal limitation of liability

• May be overridden by terms of contractual agreement
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