# ASC 805-60-15: Business Combinations — Joint Venture Formations — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/60/#15-scope-and-scope-exceptions) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:25:51.338Z to 2026-09-10T01:25:51.338Z Record version: sha256:fd570149c321a5a133a93fd3883b10780dc5291b98c0550aa7c4fe0fadbefae0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-60-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/805/60/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [805-60-15-1](https://asc.understandingaccounting.org/asc/805/60/#805-60-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:51.338Z to 2026-09-10T01:25:51.338Z Record version: sha256:7711055e141e2d3d5779e0024e5362d88d27bf2071024ed5c50a8d3d556e7a56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Entities ##### [805-60-15-2](https://asc.understandingaccounting.org/asc/805/60/#805-60-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:51.338Z to 2026-09-10T01:25:51.338Z Record version: sha256:1044350603d69e717a4f9fdad07d938730cd8a08907d19841a21550d6864cba9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the financial statements of [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "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.") and [corporate joint venture](https://asc.understandingaccounting.org/glossary/c/#corporate-joint-venture "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.") entities (collectively, joint ventures) as defined in Section 805-60-20. #### Transactions ##### [805-60-15-3](https://asc.understandingaccounting.org/asc/805/60/#805-60-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:51.338Z to 2026-09-10T01:25:51.338Z Record version: sha256:cc9046711efdb0550f43d10b9994e55762333ada9d9145d63a9b0de30a32d843 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the formation of joint ventures. ##### [805-60-15-4](https://asc.understandingaccounting.org/asc/805/60/#805-60-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:51.338Z to 2026-09-10T01:25:51.338Z Record version: sha256:032e999ddde2684713796a3eabe6046df9a2dcd00ee58347b1e3abf6690bbd95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to any of the following: 1. a Transactions between a joint venture and its [owners](https://asc.understandingaccounting.org/glossary/o/#owners "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.") other than the formation of a joint venture 2. b Formations of entities determined to be [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "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.") in accordance with Topic 958 3. c Combinations between entities, businesses, or [nonprofit activities](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "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.") under common control (see paragraph [805-50-15-6](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-6) for examples) 4. d Entities in the construction or extractive industries that may be proportionately consolidated by any of their investor-venturers in accordance with paragraph [810-10-45-14](https://asc.understandingaccounting.org/asc/810/10/#810-10-45-14) 5. e Collaborative arrangements within the scope of Topic 808, except for any part of the arrangement that is conducted in a separate legal entity that meets the definition of a joint venture.