MFRS11: Joint Arrangement.
On 1 October 2018, Jojo Bhd with 2 other parties, Kenari Bhd and Tiong Bhd, structured a joint arrangement in an incorporated entity, Koko Bhd, with rights to the net assets of the arrangement. Jojo Bhd has 40% of the voting rights in the joint arrangement while Kenari Bhd and Tiong Bhd have 35% and 25% of the voting rights respectively. The contractual arrangement between these three parties specifies that at least 75% of the voting rights are required to make decisions about the relevant activities of the arrangement.
Required:
(a) Explain whether all the three parties in the joint arrangement would have joint control over Koko Bhd.
(b) Briefly explain the two types of joint arrangement in accordance with MFRS11: Joint Arrangement.
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