AASB 11 Joint Arrangements, provides that joint control exists where:
A) no single party is in a position to control the activity unilaterally;
B) the decisions in areas essential to the goals of the joint arrangement do not require the consent of the parties;
C) no one party may be appointed as the manager of the joint arrangement;
D) one party alone has power to control the strategic operating decisions of the joint arrangement.

Question

Quizplus · Accepted Answer

According to AASB 11, joint control exists where no single party is in a position to control the activity unilaterally. Thus, option A is the correct choice. Option B is incorrect because decisions in areas essential to the goals of the joint arrangement require unanimous consent of the parties. Option C is also incorrect because the fact that no one party may be appointed as the manager does not necessarily mean that joint control exists. Option D is incorrect because if one party alone has power to control the strategic operating decisions of the joint arrangement, then joint control does not exist, and it would be considered a control relationship.

AASB 11 Joint Arrangements, Provides That Joint Control Exists Where