AASB 11 Joint Arrangements, Provides That Joint Control Exists Where

question 1

Multiple Choice

AASB 11 Joint Arrangements, provides that joint control exists where:

• A) no single party is in a position to control the activity unilaterally;
• B) the decisions in areas essential to the goals of the joint arrangement do not require the consent of the parties;
• C) no one party may be appointed as the manager of the joint arrangement;
• D) one party alone has power to control the strategic operating decisions of the joint arrangement.

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Definitions:

Current Liabilities

Short-term financial obligations due within one year or less, typically including accounts payable, short-term loans, and other similar liabilities.

Obligations

The responsibilities or liabilities a company has, typically financial in nature, that it is required to pay to others.

Liquidity

The ability to change an asset into cash easily without affecting its market price.

Maturing Obligations

Refers to debts or loans that are due for repayment within a specific period.