The particular relationship between parties that signifies the existence of a joint arrangement is:
A) significant influence by one party over the other party;
B) control over the operating policies of one party by another party;
C) shared influence by two parties over the activities of another party;
D) joint control by the parties over the activities of an operation.

Question

Quizplus · Accepted Answer

Joint control by the parties over the activities of an operation signifies the existence of a joint arrangement. This means that both parties have the ability to make decisions about the relevant activities that significantly affect the returns of the arrangement. Control by one party (B) and shared influence by two parties over activities of another party (C) do not necessarily indicate the existence of a joint arrangement. Significant influence (A) may indicate an associate relationship but not necessarily a joint arrangement.

The Particular Relationship Between Parties That Signifies the Existence of a Joint