{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/60/#15-scope-and-scope-exceptions","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"805","topic_title":"Business Combinations","subtopic":"805-60","subtopic_title":"Joint Venture Formations","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"805-60-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-6680059D-6497-4AEC-AA50-C3FF172BB234\"><span class=\"sfragment-source\">This Subtopic has its own discrete scope, which is separate and distinct from the pervasive scope for this Topic as outlined in Section <a altsource=\"GUID-1FCD04C0-5799-452A-875D-AC258E8F2F53.ditamap\" class=\"ditamap\">805-10-15</a>.</span></span></div></div></div>","snippet":"This Subtopic has its own discrete scope, which is separate and distinct from the pervasive scope for this Topic as outlined in Section 805-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7711055e141e2d3d5779e0024e5362d88d27bf2071024ed5c50a8d3d556e7a56","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cfe98d1f2e8c9462eea771ae3c55ea893246390e39cdecaa665a77bb90529d26","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"805-60-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-3BF47A7E-B913-4CBC-BBAB-1050F534DFB9\"><span class=\"sfragment-source\">The guidance in this Subtopic applies to the financial statements of <a href=\"/glossary/j/#joint-venture\" class=\"term\" title=\"An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.\"><span>joint venture</span></a> and <a href=\"/glossary/c/#corporate-joint-venture\" class=\"term\" title=\"A corporation owned and operated by a small group of entities (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a corporate joint venture frequently is to share risks and rewards in developing a new market, product or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A corporate joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a corporate joint venture. The ownership of a corporate joint venture seldom changes, and its stock is usually not traded publicly. A noncontrolling interest held by public ownership, however, does not preclude a corporation from being a corporate joint venture.\"><span>corporate joint venture</span></a> entities (collectively, joint ventures) as defined in Section <a altsource=\"GUID-F283ADED-3523-4824-AF3A-E2EC7144C11C.ditamap\" class=\"ditamap\">805-60-20</a>.</span></span></div></div></div>","snippet":"The guidance in this Subtopic applies to the financial statements of joint venture and corporate joint venture entities (collectively, joint ventures) as defined in Section 805-60-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1044350603d69e717a4f9fdad07d938730cd8a08907d19841a21550d6864cba9","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5274a6224e3f57025e40f671d99f77ca78624248df3e14d98aa5882f41a6df59","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"805-60-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-F5C3B27D-A850-48AA-BC42-8D1AF011F69F\"><span class=\"sfragment-source\">The guidance in this Subtopic applies to the formation of joint ventures.</span></span></div></div></div>","snippet":"The guidance in this Subtopic applies to the formation of joint ventures.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc9046711efdb0550f43d10b9994e55762333ada9d9145d63a9b0de30a32d843","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}},{"citation":"805-60-15-4","para":"15-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-99B9A36B-352C-4ACC-8207-9CE141BF56A3\"><span class=\"sfragment-source\">The guidance in this Subtopic does not apply to any of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-2ECA9477-CC77-44FC-AA48-F705C9E79443\"><span class=\"sfragment-source\">Transactions between a joint venture and its <a href=\"/glossary/o/#owners\" class=\"term\" title=\"Used broadly to include holders of ownership interests (equity interests) of investor-owned entities, mutual entities, or not-for-profit entities. Owners include shareholders, partners, proprietors, or members or participants of mutual entities. Owners also include owner and member interests in the net assets of not-for-profit entities.\"><span>owners</span></a> other than the formation of a joint venture</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-5BBCF213-D14E-487C-982F-59D1984AC59E\"><span class=\"sfragment-source\">Formations of entities determined to be <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entities</span></a> in accordance with Topic <a altsource=\"GUID-7D6E748A-8E8A-4AF3-A450-7776B7B60801.ditamap\" class=\"ditamap\">958</a></span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-6F08516B-26F7-43FD-824C-BF1CE7646445\"><span class=\"sfragment-source\">Combinations between entities, businesses, or <a href=\"/glossary/n/#nonprofit-activity\" class=\"term\" title=\"An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.\"><span>nonprofit activities</span></a> under common control (see paragraph <a href=\"/asc/805/50/#805-50-15-6\" class=\"xref\">805-50-15-6</a> for examples)</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-D8428769-17B0-4EA8-984A-7B7F99FF6196\"><span class=\"sfragment-source\">Entities in the construction or extractive industries that may be proportionately consolidated by any of their investor-venturers in accordance with paragraph <a href=\"/asc/810/10/#810-10-45-14\" class=\"xref\">810-10-45-14</a></span></span></div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-B47E9AF8-305C-40AE-BB26-3105B92525EB\"><span class=\"sfragment-source\">Collaborative arrangements within the scope of Topic <a altsource=\"GUID-DC190F0B-41CD-47EF-9857-DC701FCE25AC.ditamap\" class=\"ditamap\">808</a>, except for any part of the arrangement that is conducted in a separate legal entity that meets the definition of a joint venture.</span></span></div></li></ol></div></div></div>","snippet":"The guidance in this Subtopic does not apply to any of the following:\n(a) Transactions between a joint venture and its owners other than the formation of a joint venture\n(b) Formations of entities determined to be not-fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:032e999ddde2684713796a3eabe6046df9a2dcd00ee58347b1e3abf6690bbd95","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a6aee1d5ec06fb20a8c9df4ee8abcafc08864850c8af2a46c4b9a4d61a8a864","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd570149c321a5a133a93fd3883b10780dc5291b98c0550aa7c4fe0fadbefae0","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd570149c321a5a133a93fd3883b10780dc5291b98c0550aa7c4fe0fadbefae0","downloaded_from":"2026-09-10T01:25:51.338Z","last_downloaded_at":"2026-09-10T01:25:51.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476172","source_sha256":"c9c999b890dd3effe7182d1e5050ae2b0990bf7661595ce09eb3d1d3de6b497c"}}