# Joint venture

> An arrangement in which the parties with joint control have rights to its net assets. A joint venture is included in the group accounts by the equity method.

Source: https://finconsol.com/blog/glossary/joint-venture/ (updated 28 October 2026)

## Why does it matter in a group?

A joint venture is run by parties that share control, with rights to its net assets. IFRS 11 distinguishes it from a joint operation, where the parties have rights to the assets and obligations for the liabilities and show their own share of each line. A joint venture is included by the [equity method](/blog/glossary/equity-method/), on one line, so it is not consolidated and its balances with the group are not eliminated. It differs from an [associate](/blog/glossary/associate/) in having joint control, not just influence.

## A small example

Zenvara and a partner each hold 50 percent of Harbourline. Zenvara invests GBP 2,000,000. Harbourline earns GBP 600,000. Zenvara's share is 300,000, so its investment becomes GBP 2,300,000.