A joint arrangement that confers on the parties (known as joint operators) enjoying joint control (as to the arrangement) specific rights to the assets and places on such parties specific obligations for the liabilities that correspond to this arrangement. Joint operations differ from joint ventures in that the latter entail rights to the net assets of an arrangement.

Financial reporting for joint operations requires that joint operators recognize own assets, including respective share in jointly held assets, and own liabilities, including respective share of any liabilities jointly incurred. In relation to statement of income, on the revenue side, joint operators are required to recognize own revenue from the sale of respective share of the output of the joint operation, and respective share of the revenue from sale of output by the joint operation. On the cost side, joint operators recognize own expenses, including respective share of any expenses incurred jointly.