A jointly controlled entity maintains its own accounting records and prepares financial statements from those records. Each venturer is entitled to a share of any output generated by the new entity.
The new legal entity controls the joint venture's assets and liabilities, as well as its revenue and expenses it can enter into contracts and raise financing. This type of joint venture involves a legal entity in which each venturer has an interest. There may not be a joint venture legal entity. Each venturer may receive a share of the assets' output and accept a share of the expenses incurred. Venturers may jointly control or own the assets contributed to or acquired by a joint venture. The joint venture agreement states how the revenue and expenses related to the joint venture are to be shared among the venturers. Each venturer uses its own assets, incurs its own expenses, and raises its own financing.
Instead, the joint venture uses the assets and other resources of the venturers. In all of these types of joint venture, there are two or more venturers that are bound by a contractual agreement that establishes joint control over the entity. They can be organized in the ways noted below. A joint venture is a business arrangement in which two or more parties contribute resources in order to achieve a goal.
