CERTYNEX IFRS ACADEMY

A colleague writes: "Zéphyr SA holds 10% of a joint venture whose decisions about the relevant activities require the agreement of the two other parties, but not its own (case data); Zéphyr is therefore a joint venturer on the same footing as they are." What is the error in this reasoning?

It forgets that the status of joint venturer belongs to the party holding the highest percentage, the other parties being left out of the joint venture.

It forgets that the agreement of two parties is enough to create the joint control of the third, which benefits from it indirectly over its own decisions.

It calls a joint venturer a party whose consent is not required, whereas it takes part in the joint venture without having joint control.

It overlooks that the status of joint venturer depends on how long the interest has been held rather than on the requirement of consent to decisions.