text: **2. Significant Accounting Policies (continued)**
  
  In its evaluation, management considers whether Killam controls the entity by virtue of the following circumstances: 
  
  a) Power over more than half of the voting rights by virtue of an agreement with other investors; 
  
  b) Power to govern the financial and operating policies of the entity under a statute or an agreement; 
  
  c) Power to appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the 
  entity is by that board or body; 
  
  d) Power to cast the majority of votes at meetings of the board of directors or equivalent governing body and control of the entity is by 
  that board or body. 
  
  A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. Losses are 
  attributed to the non‑controlling interest even if that results in a deficit balance. 
  
  *(ii) Joint Arrangements*
  The Company has contractual arrangements with other parties which represent joint ventures. These take the form of agreements to share 
  control over the entities. 
  
  Where a joint venture is established through an interest in a company (a jointly controlled entity), the Company recognizes an interest 
  in the entity’s assets and liabilities using the equity method of accounting. Under the equity method, the interest in the joint venture is 
  carried in the Consolidated Statement of Financial Position at cost plus post acquisition changes in the Company’s share of the net assets, 
  less distributions received and less any impairment in the value of individual investments. 