Joint Arrangement Concepts Summary

Joint Arrangement Concepts
PAS 31 Types of Joint Ventures
Acronym Stands for
JCA Jointly controlled asset
JCO Jointly controlled operations
JCE Jointly controlled entity
PFRS 11 Types of Joint Arrangements
JO Joint Operations
JV Joint Ventures
PAS 4 Types of Joint Ventures
JCA Jointly controlled asset
JCO Jointly controlled operations
JCE Jointly controlled entity


Joint Venture

• Methods:
o Cost Method
o Fair Value Method
o Equity Method (SILENT)

PFRS 11: Joint Arrangements

A joint arrangement is an arrangement of which two or more parties have joint control.




Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require the unanimous consent
of the parties sharing control.


Relevant activities are those that significantly affect the returns of the entity or the
arrangement.



Types of Joint Arrangements

Joint Operations • rights to the assets • With or • Partnership
• obligations for the liabilities without Setup
• joint operators Separate (Unlimited
Vehicle Liability)
Joint Ventures • rights to the net assets • With Separate • Corporation
• joint venturers Vehicle Setup