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Dear tutor,
If joint arrangement means JOINT CONTROL, then how can each party will normally have a right of veto over key decisions? My understanding is that they have to decide together and no one can individually make decisions. First party will have to recommend a decision and then it will be decided if the other party also agrees with the first party. This applies to all decisions.
Further, the entity is given the choice of selecting JOINT VENTURE or JOINT OPERATION while doing accounting? Can entity select anyone and continue that for future?
Thanks,
Joint control – everything you say is right
No choice over JO v JV:
1. If you and I jointly own an item of PPE – JO
2. If you and I each own 50% of shares of company – JVOk.
So JV is always used where there is 50% share-ownership is involved?
and JO is used where part of Balance Sheet is shared between two or more parties in equal shares?
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