Accounting Standards Codification 808 (ASC 808) was released to address the more specific topic of collaborative arrangements and endeavors. As at times businesses do not always enter an arrangement entirely by themselves, this topic is necessary to address those issues that come up when collaboration is entered.
What types of arrangements does ASC 808 cover?
- Joint Ventures
- Activities with Unrelated Third Parties
- The accounting policy for reporting said arrangement
- Information about the nature and purpose of the arrangement
- The company’s rights and obligations that result
- The amounts in the consolidated income statement that relate to the collaborative arrangement
- Building hospitals and clinics
- Developing pharmaceutical drugs
- Developing computer software and hardware
- Producing motion pictures
- Building large real estate projects
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