Simon Ltd has acquired a mining lease in Torquay that the managing director Simon believes contains valuable oil reserves. However, Simon is a surfer and  no knowledge of oil exploration and development. As a result, Simon Ltd enters a joint arrangement with Anderson Ltd pursuant to which Anderson Ltd will perform the exploration, evaluation and development of the Torquay site for which Anderson Ltd will receive a 50 per cent interest in the mining lease and a 50 percent share of any oil produced. The contractual terms of the arrangement require both Simon Ltd and Anderson Ltd to jointly make all decisions in relation to the joint arrangement.

a. How should Simon Ltd classify its joint arrangement with Anderson Ltd in accordance with AASB 11?

b. How should Simon Ltd account for its investment in the joint arrangement in accordance with AASB 11?