Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A joint arrangement in which each party has direct rights to the assets and direct obligations for the liabilities, so each recognises its own share of the assets, liabilities, revenue and expenses.
The case where "it is a joint venture, so the debt is off the balance sheet" is simply wrong. Unincorporated arrangements such as jointly held oil and gas exploration blocks commonly fall here.
A withdrawn treatment under which an investor included its percentage share of each line of a jointly controlled entity. Ind AS 111 removed it as an option for joint ventures, which are equity-accounted instead.
Worth knowing because older reports and a good deal of commentary still use the phrase. A joint operation looks similar on the face of the accounts but is a different thing: recognition of the party’s own assets and obligations, not a proportion of somebody else’s.