Which statement is not correct about "joint arrangements"?
A)Joint arrangements usually have a limited life and a defined set of objectives or activities.
B)A joint arrangement is the same as a partnership for financial accounting purposes.
C)Unanimous consent for all decisions is required of all parties.
D)There is a contractually agreed sharing of control over economic activities.

Question

Quizplus · Accepted Answer

A joint arrangement is not necessarily the same as a partnership for financial accounting purposes. While partnerships are a type of joint arrangement, there are other types of joint arrangements recognized by accounting standards, such as joint operations and joint ventures.

Which Statement Is Not Correct About "Joint Arrangements