Venturers among themselves

Learning objectives

• Distinguish the joint venturer-joint venture relationship from the relationship between joint venturers.L1, L2

Normative references

• IAS 24 §11The following are not related parties in themselves: two entities simply because they have a director or other member of key management personnel in common, or because a member of key management personnel of one entity has significant influence over the other; two joint venturers simply because they share joint control of a joint venture; providers of finance, trade unions, public utilities, and departments and agencies of a government that does not control, jointly control or significantly influence the entity, simply by virtue of their normal dealings with the entity (even though they may affect its freedom of action or participate in its decision-making); a customer, supplier, franchisor, distributor or general agent with whom the entity transacts a significant volume of business, simply by virtue of the resulting economic dependence.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• Alpha SA and Béta SA share joint control of the joint venture Gamma. Béta prepares financial statements. Is Alpha a related party of Béta merely because of this joint control of Gamma?L1
• In its related party note, Lutèce SA lists its relationships with Marais SA and with the joint venture Nacre, of which they both share joint control. Which line of this note is wrong?L2