The Financial Accounting Standards Board (FASB) has approved new disclosure requirements related to joint ventures. These new requirements will affect companies that have joint ventures, which are businesses that are owned and operated by two or more entities.
Under the new rules, companies will need to disclose more information about their joint ventures, including the nature of the joint venture, the terms of any arrangements with the other owners, and the risks associated with the joint venture. The goal of these new requirements is to provide investors with more transparency and better information about the risks and benefits of joint ventures.
The new requirements are expected to take effect in 2023, and that companies will need to provide these disclosures in their financial statements. The FASB has said that it will provide additional guidance and implementation resources to help companies comply with the new rules.
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