FRS 9 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

Associate

Nature of relationship: Investor holds a participating interest and exercises significant influence.  
Accounting treatment in consolidated financial statements: Equity method

Joint venture

Nature of relationship: Investor holds a long-term interest and shares control under a contractual arrangement
Accounting treatment in consolidated financial statements: Gross equity method

Joint venture that is not an entity

Nature of relationship: Entities participate in an arrangement to carry on part of their own trades or businesses
Accounting treatment in consolidated financial statements: Each party accounts for own share of assets, liabilities and cash flows.

• Read FRC Summary on FRS 9

Last updated 21 June 2015