The short-term convergence project proposes to eliminate proportionate consolidation consistent with the Roadmap agreement. However, the IASB staff has considered and taken into account some of the early work developed by the AASB in its long-term research project on joint ventures as useful background information.

The Board agreed with the staff's view that the short-term convergence project be limited to requiring the application of the equity method for all interests in joint-venture entities (that is, eliminating proportionate consolidation as an option in IAS 31). In the staff's view proportionate consolidation is not consistent with the Framework's criteria for asset and liability recognition. Board members indicated their reservations with equity accounting as currently applied as it does not provide sufficient information. However, the Board indicated that they did not want to tackle, at this point, the differences between equity accounting and consolidation.

Some Board members believe that despite this being a short-term project, it would be useful for the Board to explore the issue of differentiating joint ventures and undivided interests. Attached to this is the question of whether substantive guidance can be developed to distinguish jointly controlled assets or operations and jointly controlled entities.