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Comment letter - FASB’s proposed guidance for joint venture formations


Overview

In our comment letter, we support the Board’s proposal to require a joint venture to apply a new basis of accounting and initially measure most of its assets and liabilities at fair value upon formation. We believe this would reduce diversity in practice related to the measurement of joint ventures at formation. While we believe the proposed amendments generally would be understandable and operable, we recommend that the Board clarify certain aspects.

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