Joint arrangement
A joint arrangement is an arrangement of which two or more parties have joint control. The parties are bound by a contractual arrangement, and IFRS 11 classifies joint arrangements as joint operations or joint ventures according to the parties’ rights and obligations.
Worked example
Two businesses agree that decisions about the activity’s relevant operations require both parties’ consent; they assess their rights and obligations.
Common mistake
Sharing an activity or holding a minority interest does not by itself establish joint control.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |