IFRS 11 Final

Wayground (Quizziz)

Multiple Choice

A partnership is not a separate vehicle as it is not a separate legal personality

• True

• False

Multiple Choice

 Two manufacturers form a company (Vehicle C, a joint arrangement) to produce an input they each consume. A shareholders’ agreement obliges Vehicle C to offer 100 % of its output to the two manufacturers at cost, and they must purchase all output. Third-party sales must be approved by the two parties. Vehicle C operates at break-even.

 

 How should the arrangement be classified?

• Joint venture

• Joint operation

Multiple Choice

 Alpha, Beta and Gamma enter into a joint arrangement. Voting rights are 60 % for Alpha, 30 % for Beta and 10 % for Gamma. The contract requires 75 % approval to make decisions about relevant activities. The contract does not specify which specific parties must agree.

 

 Is this a joint arrangement under IFRS 11?

• Yes, Alpha and Beta have joint control

• Yes, all three parties have joint control

• No, it fails the unanimous-consent requirement

• No, it’s a subsidiary of Alpha

Multiple Choice

If the legal form gives the parties rights to the net assets (such as a company), we can definitively conclude the arrangement is a joint venture?

• True

• False

Multiple Choice

 Trent holds 70 % of the voting rights in JointCo, Alexander holds 20 % and Arnold 10 %. Joint Co’s MOI requires 80 % approval for relevant decisions. There is no shareholders’ agreement.

 

 Is this a joint arrangement?

• Yes, trent and Alexander collectively control and require unanimous consent

• Yes, Alexander and Gamma together can block Trent

• No, because more than one combination (Trent+Alexander or Trent+Arnold) can reach 80 %

• No, because Trent has majority control

Multiple Choice

If a contract does not state which parties must specifically agree, can there be joint control?

• Surely not, it must be specifically stated

• Y, joint control can be established implicitly