The International Accounting Standards Board has released a joint venture questionnaire to identify the various structures of joint arrangements used worldwide.
Though joint ventures aren't specifically on the agenda of the U.S.-based Financial Accounting Standards Board, the FASB is still encouraging U.S. public companies to provide the researchers "with information on prevailing joint arrangement structures they are involved in."
According to the Board, participation will help to ensure that the research considers the full range of joint ventures arrangements used internationally.
Currently, when two or more parties invest in an undertaking together, the arrangements are usually classified under international financial reporting standards as joint ventures.
In some cases, they are classified under international financial reporting standards as "investments in associates."
Under U.S. GAAP, these types of investments are generally classified as "equity-method investments," although some may be variable interest entities.
The survey is intended to elicit information on these types of investments regardless of how they are currently accounted for.
Both online and downloadable PDF versions of the surveys are available from the box above, right.
In some cases where two or more parties invest in an undertaking together, these arrangements have the characteristics of, and are classified under international financial reporting standards as, joint ventures. In other cases, they are classified under international financial reporting standards as investments in associates. Under U.S. GAAP, these types of investments are generally classified as equity-method investments, although some may be variable interest entities. The survey is intended to elicit information on these types of investments regardless of how they are currently accounted for.
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