According to Canadian GAAP, what is the key feature of a joint arrangement?
A) One venturer has a controlling interest in the joint arrangement.
B) More than one venturer has a controlling interest in the joint arrangement.
C) Joint control, namely, no one venturer can unilaterally control the venture regardless of the size of the equity contribution.
D) The two largest equity contributors will have joint control over the venture.

Question

Quizplus · Accepted Answer

According to Canadian GAAP, the key feature of a joint arrangement is joint control, meaning no one venturer can unilaterally control the venture regardless of the size of the equity contribution. Therefore, option C is the correct answer. Options A, B, and D are incorrect as they do not reflect the key feature of joint control.

According to Canadian GAAP, What Is the Key Feature of a Joint