IFRS 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 IFRS 11, joint control exists when no single party is in a position to control the activity unilaterally. Therefore, option A is the correct answer. Option B is incorrect as it describes a situation where no joint control exists. Option C is incorrect as joint control does not require the appointment of a manager. Option D is incorrect as it describes a form of control that is not joint control.

IFRS 11 Joint Arrangements, Provides That Joint Control Exists Where