Posted: February 26th, 2015
A joint arrangement is defined as being an arrangement where two or more parties contractually agree to share the control. Joint control exists only when the decisions about the activities that significantly affect the returns of an arrangement require the unanimous consent of the parties sharing control. This standard helps the users of financial statement to get a more clear picture of the transactions under joint arrangement and helps to assess the impact of the arrangement in more detail. It clearly requires to state each parties right and liabilities in the joint arrangement thereby giving a more transparent view of the transactions.
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