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CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

Tulsi Agro Ltd and Vindhya Foods Ltd share joint control of an arrangement. Which statement correctly describes the definitions and classification under Ind AS 111?

A joint arrangement is one in which two or more parties have joint control, and under Ind AS 111 it is classified as either a joint operation or a joint venture. It does not depend on one party controlling, nor are the categories subsidiaries or associates.

  1. AJoint arrangement means an arrangement where one party has control and others have significant influence
  2. BA joint arrangement is an arrangement of which two or more parties have joint control, and it is either a joint operation or a joint ventureCorrect
  3. CA joint arrangement exists only when it is structured through a separate legal company
  4. DJoint arrangements are classified into subsidiaries and associates

Explanation

Ind AS 111 Appendix A defines a joint arrangement as one of which two or more parties have joint control, and paragraph 6 classifies it as a joint operation or a joint venture. The first option describes control with significant influence, and the others add conditions or categories not in the text.

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