Joint venture
A joint venture is a joint arrangement in which the parties that have joint control have rights to the arrangement’s net assets. IFRS 11 distinguishes it from a joint operation, where parties have rights to assets and obligations for liabilities. Accounting depends on the applicable standards.
Worked example
Two parties jointly control an incorporated arrangement and have rights to its net assets; they assess whether it is a joint venture.
Common mistake
Do not call every collaborative project a joint venture without assessing joint control and rights to net assets.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |