Joint control (paras. BC20-BC23)

BC20 In ED 9, the proposed definition of 'joint arrangement' required 'shared decision-making' by all the parties to the arrangement. Some respondents questioned how 'shared decision-making' was intended to operate and how it differed from 'joint control'. The Board introduced the term 'shared decision-making' in the exposure draft instead of 'joint control' because control was defined in IAS 27 Consolidated and Separate Financial Statements in the context of having power over the financial and operating policies of an entity.[The consolidation requirements in IAS 27 were replaced by IFRS 10 Consolidated Financial Statements issued in 2011 and the definition of control was revised.] During its redeliberation of ED 9, the Board concluded that in joint arrangements, it is the activity undertaken by the parties that is the matter over which the parties share control or share decision-making, regardless of whether the activity is conducted in a separate entity. Consequently, the Board conc

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