Joint arrangements require assessing contractual rights; unanimous consent creates joint control and determines operation versus venture accounting.

This Standard defines joint control as unanimous consent among parties over relevant activities and requires entities to classify joint arrangements as either a joint operation (rights to assets and obligations for liabilities) or a joint venture (rights to net assets) by assessing contractual terms, the legal form of any separate vehicle and other facts and circumstances; classification determines whether a party recognises its share of assets, liabilities, revenues and expenses or accounts for its interest using the equity method, with reassessment required upon changes in facts.

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