Joint control

Agreements between two or more parties often include complex contractual terms about decision-making processes. Identifying whether these arrangements involve joint control can be difficult in practice. IFRS 11 Joint Arrangements, when published, will replace IAS 31, Interests in Joint Ventures, from 1 January 2013 (with earlier application permissible); however, the underlying definition of joint control will still be the main feature of a joint arrangement. We will consider this in the example below.