{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/60/#50-disclosure","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":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"805-60-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-7DC471B5-03D8-4152-B42D-C34F8BF544C0\"><span class=\"sfragment-source\">A <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> shall disclose information that enables users of its financial statements to understand the nature and financial effect of the joint venture formation in the period in which the <a href=\"/glossary/f/#formation-date\" class=\"term\" title=\"The formation date of a joint venture is the date on which an entity initially meets the definition of a joint venture, which is not necessarily the legal entity formation date. The formation date is the measurement date for the formation transaction. If multiple arrangements are accounted for as a single transaction that establishes the formation of a joint venture, the formation date is the measurement date for all arrangements that form part of the single formation transaction.\"><span>formation date</span></a> occurs.</span></span></div></div></div>","snippet":"A joint venture shall disclose information that enables users of its financial statements to understand the nature and financial effect of the joint venture formation in the period in which the formation date occurs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e682beff782fcd52c8c56031a2a1175ce6b168faef125d22faf7d4fb30cb507","downloaded_from":"2026-09-10T01:26:09.999Z","last_downloaded_at":"2026-09-10T01:26:09.999Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476180","source_sha256":"5019b019f5a3cf0e31b7f57c0437caf0901f33f26a545a63d10ac2b72d8d2e4f"}},{"citation":"805-60-50-2","para":"50-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-E5D92908-08DE-440B-9194-9AB449D36D37\"><span class=\"sfragment-source\">In the period of formation, a joint venture shall disclose the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">The formation date</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-AD22CA47-C3B6-43E6-A8AE-D2FC7AE29995\"><span class=\"sfragment-source\">A description of the purpose for which the joint venture was formed (for example, 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)</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-F72BCA63-47B8-4B0F-8B36-FA660204C358\"><span class=\"sfragment-source\">The formation-date <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>fair value</span></a> of the joint venture as a whole</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-F066B9C0-8CC8-49E8-9CB5-1D048ECEA882\"><span class=\"sfragment-source\">A description of the assets and liabilities recognized by the joint venture at the formation date</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-0CD9383E-438C-482A-BE0B-234DD6758603\"><span class=\"sfragment-source\">The amounts recognized by the joint venture for each major class of assets and liabilities as a result of accounting for its formation, either presented on the face of financial statements or disclosed in the notes to financial statements (see paragraph <a href=\"/asc/805/60/#805-60-45-1\" class=\"xref\">805-60-45-1</a>)</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">f</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-053B4059-5065-4999-9E8D-D6241108CDA0\"><span class=\"sfragment-source\">A qualitative description of the factors that make up any <a href=\"/glossary/g/#goodwill\" class=\"term\" title=\"An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.\"><span>goodwill</span></a> recognized, such as expected synergies from combining operations of the contributed assets or <a href=\"/glossary/b/#business\" class=\"term\" title=\"Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.\"><span>businesses</span></a>, <a href=\"/glossary/i/#intangible-assets\" class=\"term\" title=\"Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)\"><span>intangible assets</span></a> that do not qualify for separate recognition, or other factors.</span></span></div></li></ol></div></div></div>","snippet":"In the period of formation, a joint venture shall disclose the following:\n(a) The formation date\n(b) A description of the purpose for which the joint venture was formed (for example, to share risks and rewards in develop…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88b09ac5a8d0654624a39e6ad622d3999a6a952d4bd08097f44d1c7ccb8e207c","downloaded_from":"2026-09-10T01:26:09.999Z","last_downloaded_at":"2026-09-10T01:26:09.999Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476180","source_sha256":"5019b019f5a3cf0e31b7f57c0437caf0901f33f26a545a63d10ac2b72d8d2e4f"}},{"citation":"805-60-50-3","para":"50-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-13A7259A-2557-4546-A1AF-46FC3DDE9ACE\"><span class=\"sfragment-source\">If the initial accounting for a joint venture formation is incomplete (see paragraph <a href=\"/asc/805/60/#805-60-25-14\" class=\"xref\">805-60-25-14</a>) for particular assets, liabilities, noncontrolling interests, or the formation-date fair value of the joint venture as a whole and the amounts recognized in the financial statements for the joint venture formation thus have been determined only provisionally, the joint venture shall disclose the following information: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-29ACE1F9-ADCB-4C27-8E73-4E93B3679086\"><span class=\"sfragment-source\">The reasons why the initial accounting is incomplete</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-C289A4A5-0D4E-4C38-9658-32FA60E7B0B6\"><span class=\"sfragment-source\">The assets, liabilities, noncontrolling interests, or the formation-date fair value of the joint venture as a whole for which the initial accounting is incomplete</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-7DAF9862-8A3E-448D-8E1C-E092CA5A49C4\"><span class=\"sfragment-source\">The nature and amount of any measurement period adjustments recognized during the reporting period, including separately the amount of adjustment to current-period income statement line items relating to the income effects that would have been recognized in previous periods if the adjustment to provisional amounts was recognized as of the formation date.</span></span></div></li></ol></div></div></div>","snippet":"If the initial accounting for a joint venture formation is incomplete (see paragraph 805-60-25-14) for particular assets, liabilities, noncontrolling interests, or the formation-date fair value of the joint venture as a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5536bcebbdff1d7922b785c8dc2d96ef248eb55c8d185665a5d0c7e48af88a6b","downloaded_from":"2026-09-10T01:26:09.999Z","last_downloaded_at":"2026-09-10T01:26:09.999Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476180","source_sha256":"5019b019f5a3cf0e31b7f57c0437caf0901f33f26a545a63d10ac2b72d8d2e4f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab8bb617baba5a72126607f89b9f991e408dc3fe8e8b97ef1e1c2aa0d50ddc53","downloaded_from":"2026-09-10T01:26:09.999Z","last_downloaded_at":"2026-09-10T01:26:09.999Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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