Page 10 - PowerPoint Presentation

JOINT ARRANGEMENTS

Types of Joint Arrangements

• Investor must determine type of arrangement (.14)

• Depends on rights and obligations

• Determines accounting treatment

• Joint operation (JO)

• Parties with joint control have rights to assets and

obligations for liabilities of arrangement

• Have direct access to assets and held directly responsible for

liabilities

• Referred to as ‘Joint operators’

10