Page 6 - FAC4862 slides JAs and Revenue CM

JOINT ARRANGEMENTS

Introduction

• An entity applies IFRS 11 to determine the type of

joint arrangement in which it is involved.

• A joint arrangement is an agreement of which two

or more parties have joint control.

• A joint arrangement has the following

characteristics (IFRS 11.5):

• The parties are bound by a contractual arrangement.

• The contractual arrangement gives two or more of those

parties joint control of the arrangement.

• A joint arrangement is classified as either a joint

operation or a joint venture.

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