Joint control
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about its relevant activities require the unanimous consent of the parties sharing control. The auditor evaluates the agreement and actual decision rights.
Worked example
Two parties each must consent to decisions that significantly affect the arrangement’s returns; they assess whether joint control exists.
Common mistake
A protective veto or equal shareholding alone does not automatically establish joint control without assessing the relevant activities and contractual terms.
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 |