How is joint control defined in FRS 102?

Joint control in FRS 102 is defined by a contractual agreement that establishes shared control over an arrangement. This means that the parties involved have rights to the assets and obligations related to the arrangement, and decisions about the activities that significantly affect those assets require the consent of everyone involved.

In the context of joint arrangements, the essence lies in the need for decision-making processes that involve multiple parties rather than a single entity holding the control. This contractual basis ensures that all parties have an input and agree on critical decisions, reflecting a collaborative effort rather than unilateral control.

The other options highlight different aspects of control but do not fully capture the concept of joint control defined in FRS 102. For example, merely controlling financial outcomes does not address how that control is exercised between parties. Exclusive ownership contradicts the idea of shared control, and majority decision-making power does not necessarily imply that all parties agree on essential decisions, which is a critical requirement for joint control under the framework.