A joint arrangement where assets and liabilities for the arrangement are held in a separate vehicle can be either a joint venture or a joint operation.

Question

Quizplus · Accepted Answer

This statement is true. Joint arrangements can take the form of joint ventures or joint operations, and both involve holding assets and liabilities in a separate vehicle. However, the specific characteristics and accounting treatment of each type of arrangement may vary.

A Joint Arrangement Where Assets and Liabilities for the Arrangement