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com/ifrs
No
Is the joint arrangement structured through a separate vehicle?
Yes
Joint operation
Does the legal form of the separate vehicle confer upon the parties Yes
direct rights to assets and obligations for liabilities relating to the
arrangement?
No
Yes
Do the contractual terms between the parties confer upon them rights to
assets and obligations for liabilities relating to the arrangement?
No
Do other facts and circumstances lead to rights to assets and obligations Yes
for liabilities being conferred upon the parties to the arrangement?
No
Joint venture
The following assumptions are common to each of the scenarios considered below:
(a) joint control exists; and
(b) there is a legal entity that creates separation between the parties and the joint
arrangement.
The initial indicators are that the arrangements are joint ventures. The table below
outlines how ‘other facts and circumstances’ might affect the classification of the
arrangement.
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financial situation or needs of any recipient; any recipient should not act upon the information contained in this publication without obtaining independent professional advice.
No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by
law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or
anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
PwC: Practical
© 2012 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers toguide to IFRS
the network – Classification
of member of joint arrangements
firms of PricewaterhouseCoopers 8
International Limited, each
of which is a separate and independent legal entity.