Part B: Interest in Joint Venture OperatPart B: Interest in Joint Venture Operations/entities

Part B: Interest in Joint Venture Operations/entities

For the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’. An extract of the definition in AASB 131 is provided below:

Joint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.

Joint ventures take many forms and structures. This standard identifies three broad types - jointly controlled operations, jointly controlled assets and jointly controlled entities.

The following characteristics are common to all join ventures:

(a) two or more venturers are bound by a contractual arrangement; and

(b) the contractual arrangement establishes joint control

Jointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.

Jointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture

Jointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.