What type of joint arrangement allows parties to have rights to the assets and obligations for liabilities?

In a joint operation, the parties involved share rights to the assets and obligations for the liabilities associated with the joint arrangement. This type of arrangement is characterized by each party sharing not only profits and risks but also having direct control over the underlying assets and responsibilities for the operations. Each party accounts for its own share of the assets, liabilities, revenues, and expenses from the joint operation in their own financial statements, reflecting a more integrated approach to the collaboration.

This contrasts with a joint venture, which typically involves the creation of a separate legal entity where the parties might only share profits rather than the rights to the underlying assets or obligations for liabilities. In a joint partnership, the focus is on the partnership arrangement rather than explicitly defining asset rights and obligations. A joint agreement, while it denotes a collaboration, does not specify the operational and financial responsibilities as clearly as a joint operation does. Therefore, joint operation is the correct classification for the scenario described.