BC81 IAS 27, SIC‑12 and ED 10 did not specifically address situations in which multiple parties have decision‑making authority over the activities of an investee. Some respondents to ED 10 questioned how the control model would be applied in such situations. Respondents were concerned that the absence of specific guidance would create structuring opportunities to avoid the consolidation of structured entities - they asserted that, without any guidance, power could easily be disguised and divided among different parties so that it could be argued that no one would have power over the investee.

BC82 The Board identified the following situations in which multiple parties may have decision‑making authority over the activities of an investee:

(a) joint control

(b) shared decision‑making that is not joint control

(c) multiple parties that each have unilateral decision‑making rights to direct different activities of an investee that significantly affect the investee's returns.

Joint control