On October 10, 2023, Chuck Morton and Jordan Jean published “Private Companies Should Think Ahead on Joint Venture Changes” in Bloomberg Tax. The following is an excerpt:
The Financial Account Standards Board’s recently adopted accounting standard update will require newly formed joint ventures to disclose their formation date starting on Jan. 1, 2025.
They must also measure their identifiable assets as the fair value of the joint venture as of the formation date, and recognize goodwill as of the formation date as the difference between the joint venture’s total net assets and its identifiable net assets, when applicable.
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