Page 4 - UNISA Test 2 Slides - Joint Arranagemenst (Finac2)

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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