CERTYNEX IFRS ACADEMY

An analyst writes: "Decisions about Orion's relevant activities require the agreement of Pôle and Quai; there is therefore joint control, with no need to examine whether Pôle and Quai control Orion collectively." What is the error in this reasoning?

It confuses joint control with significant influence, which is enough to classify the arrangement as a joint venture.

It forgets that joint control is inferred from the percentage held by Pôle and Quai in Orion's capital.

It looks for unanimity without first establishing that the parties control the entity collectively, the first step of the analysis.

It omits to classify Orion first as a joint operation or a joint venture before assessing joint control.