留学生作业代写 AASB 11.7 defines joint control as:

Arthur et al. Q8.6 Joint control (Section 8.3.2)
AASB 11.7 defines joint control as:
. . . 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.
Accordingly, joint control will only exist when contractually both the strategic financial and operating decisions for a mutually beneficial, productive or advantageous enterprise are the result of harmonious decision making by the participating venturers sharing control. All criteria of the AASB 11.7 joint control definition have to be satisfied otherwise joint control will not exist. Accordingly, the joint venture will not be recognised under AASB 11 and the parties cannot adopt joint venture accounting for their joint venture investments in their financial statements.

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AASB 11.7 joint control definition criteria are:
􏰉 Evidence of a specific economic activity;
􏰉 Contractual agreement that connects the venturers;
􏰉 Venturers share both the strategic financial and operating policy decisions;
􏰉 Unanimous decision making exists at all times between the venturers.
These criteria have been applied to Infernix Ltd investments as detailed in the following tables.
Orange Ltd
Specific economic activity
Contractual agreement connecting venturers
Discussion
Application (Y/N)
New manufacturing process in Yes anticipation of reducing Infernix Ltd
operating costs.
Company constitution and related Yes agreements between venturers.
Venturers share both strategic financial and operating policy decisions
Responsibilities for strategic financial and operating decision are split between Infernix Ltd and other venturer.
Unanimous decision making
Although 2 board of directors’ positions are held by Infernix Ltd and the other 2 board of directors’ positions are held by the other venturer, it is not clear whether unanimous decision making will occur.
Conclusion: Infernix Ltd investment in Orange Ltd cannot be classified as a joint venture as there is not joint control between the venturers. The venturers do not share all the strategic financial and operating decisions and it is questionable whether unanimous decision making will occur.

Specific economic activity
Contractual agreement connecting venturers
Venturers share both strategic financial and operating policy decisions
Discussion
Application (Y/N)
Manufacture of innovative Yes environmental product to replace
Company constitution and related Yes agreements between venturers.
All directors are responsible for Yes establishing all of policies.
Unanimous decision making
A resolution cannot be passed unless there is approval from all directors. In the event of a disagreement, a meditation processed is adopted.
Conclusion: Infernix Ltd investment in can be classified as a joint venturer as there is joint control between the venturers. All criteria have been satisfied.
Turquoise Fund
Specific economic activity
Contractual agreement connecting venturers
Venturers share both strategic financial and operating policy decisions
Unanimous decision making
Discussion
Application (Y/N)
Lobby government departments for Yes industry changes.
Trust deed and related agreements Yes between venturers.
All strategic decisions are made by 7- No member panel which includes 2
external non-venturer parties.
Decisions made by 7-member panel No (that includes 2 external non-venturer
parties) on a majority basis.
Conclusion: Infernix Ltd investment in the Turquoise Fund cannot be classified as a joint venture as there is not joint control between the venturers. The venturers do not share all the strategic financial and operating decision and it is unanimous decision making will not occur.

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