FASB Proposes Improvements to Accounting for Joint Venture Formations

The FASB has issued a proposed Accounting Standards Update (ASU), Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. The objectives of the proposal are to “(1) provide decision-useful information to investors and other allocators of capital (collectively, investors) in a joint venture’s financial statements and (2) reduce diversity in practice.”

Comments on the proposed ASU are due by December 27, 2022. For more information, see the press release on the FASB’s Web site.