Joint Arrangement
Accounting glossary · Understand, connect, apply
A joint arrangement is an arrangement over which two or more parties have joint control. IFRS 11 classifies it as a joint operation or a joint venture.
Example
Two entities contract to run a facility together. If they share control, they assess their rights and obligations to determine the type of arrangement.
Remember the difference
A separate vehicle is one factor. Its legal form, the agreement and other facts can affect how the parties classify the arrangement.
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Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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