CERTYNEX IFRS ACADEMY

Vega SA and Rigel SA have created Arion SA, a separate company whose legal form suggests rights to net assets. The contractual arrangement nevertheless provides that each party bears half of Arion's debts and receives half of its revenues and expenses (case facts). What is concluded about the role of the contractual terms?

They can modify the rights the form suggested: here they point towards rights to assets and obligations for liabilities, subject to the other facts.

They have no bearing, the legal form of the company prevailing over the clauses of the arrangement in classifying the joint arrangement.

They confirm the joint venture, the parties' bearing of the debts being characteristic of a right to net assets.

They are assessed in the event of a dispute between the parties, and not in order to classify the joint arrangement in their respective accounts.