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CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

Which statement about the classification of a joint arrangement under Ind AS 111 is correct as stated in the standard text?

Ind AS 111 states that a joint arrangement is either a joint operation or a joint venture. There is no third category such as associate, and two or more parties with joint control are enough; a separate vehicle alone does not make it a joint venture.

  1. AA joint arrangement is either a joint operation or a joint ventureCorrect
  2. BA joint arrangement can be a joint operation, a joint venture or an associate
  3. CA joint arrangement is always a joint venture if a separate vehicle exists
  4. DA joint arrangement requires joint control by at least three parties

Explanation

The standard states that a joint arrangement is either a joint operation or a joint venture. Associate is not a category of joint arrangement. Joint control needs two or more parties, not three, and the existence of a separate vehicle alone does not fix the classification.

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