Businesses, Auditors Seek Clarity in Joint Venture Accounting

Businesses, audit firms, and trade groups largely back a US accounting rulemaker plan that tries to answer how business partners recognize and measure equipment, real estate, and other assets they contribute to a joint venture.

The Financial Accounting Standards Board’s plan, issued in October, calls on joint ventures to apply a new basis of accounting once they form and to recognize and measure their assets and liabilities at fair value.

“We believe fair value generally provides the most relevant information to the users of a joint venture’s financial statements and promotes greater consistency with the venturer’s accounting,” BDO USA ...