By the words an Associates company is a corporation in which a parent company possesss an ownership stake.Generally the parent company owns only a minority stake of the associates comapny.And the term joint venture is called a commercial enterprise undertaken jointly by two or more parties which otherwise retain their distinct identities.IAS 28 requires an investorto account for its investment in associates using the equity method .IFRS11 requires an investors to account for it investors in joint ventures using the equity method.In associates an entitty over which an investors has significant influence .And a joint venture is a joint control of the arrangement whereby the parties having joint control over the net asset of the joint arrangement.The purpose of the joint venture account is that account is credited and a bank account or debtor account is debited incase of either cash or sale or credit.

There are lot of advantages for the associates and joint venture.The access to the new market and distribution networks,It will increased the capacity,Sharing of risk and cost and costs with the partner,Access to the new knowledge and expertise including specilaised staff.The access to greater resources One of the main adavnatges of joint venture is shared investment ,Each party in the venture contributes a certain amount of initial capital to the project .It will help to share the expenses,each party share a coomom pool of resources ,which can bring down costs on overall basis..Technical expertise and know how ,New market penteration,,New revenue streams,Intellectual property gains,Synergy benefits,Enhanced credibility,Barriers to competition,Improved economhy of sclae.These are the main benefits regards with the joint ventures.

Joint venture both have advantages and disadvantages.While consiered with these factors it will also have the risk.Time and effortr are the main complex one required to build the right bussiness relationship .Each new partners in the venture have the objectives,By pusuing different objectives of the venture be clearly defined and communicated to evryone involved at the outset.Cultural mismatch and different management styles between the two firms engaged in the joint venture can lead to poor integration ,THere is an imbalance in the level of expertise investment .These problems can be say that that high risk associated with the joint venture