IPSAS 8 governs accounting for interests in joint ventures and the reporting of joint venture assets, liabilities, revenue and expenses in the financial statements of venturers and investors, regardless of the structures or forms under which the joint venture activities take place.
IAS 31, Interests in Joint Ventures
A joint venture is a binding arrangement whereby two or more parties are committed to undertake an activity that is subject to joint control. The binding arrangement may for example take the form of a contract. The arrangement usually specifies the original capital contribution and the sharing of revenue or other forms of consideration and expenses between the venturers.
Joint control is the agreed sharing of control over an activity by a binding arrangement. IPSAS 8.7 et seq. specifies what kinds of arrangements qualify as a binding arrangement.
A venturer is a party to a joint venture and has joint control over that joint venture. IPSAS 8 refers to the fact that joint ventures in the public sector may conduct commercial activities and/or provide community services at no charge.
An investor in a joint venture is a party to a joint venture and does not have joint control over that joint venture.
IPSAS 8 does not apply to venturers' interests in jointly controlled entities held by (a) venture capital organizations or (b) mutual funds, unit trusts or ...