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

Question

Quizplus · Accepted Answer

The particular relationship between parties that signifies the existence of a joint arrangement is the joint control by the parties over the activities of an operation. This means that both parties have the ability to make decisions about the operation, and therefore share in the risks and rewards of the arrangement. Control over operating policies (A) or significant influence (D) do not necessarily indicate a joint arrangement, and shared influence (B) may not involve the necessary control over the operation.

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