CERTYNEX IFRS ACADEMY

Three parties hold 40 %, 35 % and 25 % of the voting rights of an arrangement respectively. Decisions about the relevant activities require at least 65 % of the voting rights, and the arrangement does not specify any combination of parties whose unanimous consent would be required (case facts). Is the arrangement a joint arrangement under IFRS 11?

Yes: the 40 % party takes part in every decision, which is enough to establish joint control.

No: the 65 % threshold can be reached by more than one combination of parties, and the arrangement does not specify the one whose unanimous consent is required.

Yes: any qualified majority requirement creates joint control among all the parties.

Yes, between the 35 % and the 25 % parties, which together can block any decision.