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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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