Joint Operation
Accounting glossary · Understand, connect, apply
A joint operation gives the parties that jointly control it rights to its assets and obligations for its liabilities.
Example
Two contractors jointly run equipment, each with direct rights to an agreed share of its output and direct obligations for specified costs.
Remember the difference
A joint operator recognises the assets, liabilities, revenues and expenses that the applicable rules attribute to its interest.
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Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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