DISCUSS whether the joint arrangement between Power Mines Limited and Deep Minerals Limited is a joint operation or joint venture.

Determination of Joint Arrangement As per Ind AS 111 “Joint Arrangement", a joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The structure and form of the arrangement determines the nature of the relationship. Joint Operation: Joint arrangement which is not structured through a separate vehicle is a joint operation. In such a case, the contractual agreement establishes the parties' rights and obligations. Joint Venture: A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operator accounts for the assets, liabilities, revenues and expenses relating to its involvement in a joint operation in accordance with the relevant Ind AS. The arrangement between Power Mines Limited (PML) and Deep Minerals Limited (DML) is a joint operation as no separate vehicle is formed and the companies have agreed to share services and costs with decisions relating Sigma coal mine requiring unanimous agreement of both parties. Both companies should recognize their share of the asset as Property, Plant and Equipment.