Joint Venture Formations

Last updated on October 31, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Sections updated on the date above are indicated with an asterisk *)



The objectives of the Joint Venture Formations (formerly known as the Accounting by a Joint Venture for Nonmonetary Assets Contributed by Investors) project are to (1) reduce diversity in practice in the accounting for contributions made to a joint venture upon formation in a standalone joint venture’s financial statements and (2) provide useful financial reporting information to financial statement users.


The accounting by a joint venture, specifically the initial recognition and measurement of contributions made by venturers to a joint venture at formation, is not currently addressed in the Codification. Joint venture accounting is specifically not within the scope of both Topic 845, Nonmonetary Transactions, and Topic 805, Business Combinations. In the absence of authoritative guidance by the Board, practice has been influenced by several speeches given by the U.S. Securities and Exchange Commission (SEC) staff. That lack of authoritative guidance has been brought to the Board’s attention through several avenues over the last several years, both by the SEC staff and several practitioners that have requested that the Board clarify this issue through standard setting to improve practice and eliminate diversity.

At the September 18, 2019 Board meeting, the Board decided to add to its technical agenda a project on accounting by a joint venture for the initial measurement of contributions of nonmonetary assets made into the joint venture, and at the July 22, 2020 Board meeting, the Board decided to expand the scope of the project to include all contributions, irrespective of whether they are monetary or nonmonetary.

Exposure Draft(s):

On October 27, 2022, the Board issued proposed Accounting Standards Update, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. The due date for comment letters is December 27, 2022.

  • Download the proposed Accounting Standards Update.

Decisions Reached at Last Meeting:

See meeting minutes.

Tentative Board Decisions Reached to Date:

See proposed Update.

The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

The following are links to the minutes for each meeting.  To view Board meetings and handouts from the past 90 days, click here.
September 14, 2022 Board Meeting—The Board concluded its initial deliberations on the project and directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.
October 13, 2021 Board Meeting—The Board continued its initial deliberations on the project.
August 4, 2021 Board Meeting—The Board continued its initial deliberations on the project. 
February 17, 2021 Board Meeting—The Board continued its initial deliberations on the project.
July 22, 2020 Board Meeting—The Board continued its initial deliberations on the project.
January 22, 2020 Board Meeting—The Board began its initial deliberations on the project.
September 18, 2019 Board Meeting—The Board added the project to the technical agenda.

Stakeholders are asked to review and provide comments on the proposed Update by December 27, 2022.

Aarika Friend
Senior Project Manager

Gary Sardo
Practice Fellow

Dylan Ehrnst
Postgraduate Technical Assistant

Charley Heyd
Postgraduate Technical Assistant

The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.