Joint Venture
Accounting glossary · Understand, connect, apply
A joint venture gives the parties that jointly control the arrangement rights to its net assets.
Example
Two parties jointly control a separate operation and have rights only to their share of its residual net assets. These facts are consistent with a joint venture.
Remember the difference
A joint venturer generally applies the equity method under IAS 28. A joint operator has direct rights and obligations that lead to different accounting.
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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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