Reference no: EM132931214

Problem 1: What is joint control?

Option 1: The power to govern the financial and operating policies of another entity so as to obtain benefits frim its activities

Option 2: The contractual sharing of control arrangement which exists only when decisions about relevant activities require unanimous consent of the parties sharing control.

Option 3: The power to participate in the financial and operating policy decisions of another entity.

Option 4: The contractual agreement to share control of an arrangement which exists only when decisions about relevant activities require majority consent of the parties sharing control.

Problem 2: What do you call the classification of the joint arrangement when the assets and liabilities relating to the arrangement are held by a separate vehicle or when the arrangement is established with separate vehicle?

Option 1: It shall be classified as joint venture.

Option 2: It can either be a joint operation or joint venture depending on the legal form of the separate vehicle, terms of the contractual arrangement or other relevant facts and circumstance.

Option 3: Neither joint venture nor joint operation.

Option 4: It shall be classified as joint operation.

Problem 3: What is a joint arrangement whereby the parties with joint control of the arrangement have rights to the net assets of the arrangements?

Option 1: Joint operation

Option 2: Joint venture

Option 3: Joint entity

Option 4: Joint undertaking