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Sunday 21 September 2014

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Equity Method: Share of Other Net Asset Changes

Equity Method: Share of Other Net Asset Changes


 Comment letters

On 22 November 2012 the International Accounting Standards Board (IASB) published for public comment an Exposure Draft of proposed amendments to IAS 28 Investments in Associates and Joint Ventures.

 

The objective of the proposed amendments is to provide additional guidance to IAS 28 on the application of the equity method, a method of accounting whereby the investment is initially recognised at cost and subsequently adjusted to reflect the change in the investor’s share of the investee’s net assets. Specifically, it aims to provide guidance on how investors should recognise their share of the changes in the net assets of an investee that are not recognised in profit or loss or other comprehensive income of the investee, and that are not distributions received (‘other net asset changes’).

 

The issue originated from a submission to the IFRS Interpretations Committee. As a result, the Interpretations Committee recommended that the IASB amend IAS 28.  The IASB proposes that investors should recognise in the investors’ equity their share of the investee’s other net asset changes

Comment letter deadline

 

The Draft Interpretation commenting period closed on 22 March 2013.

Respondent type

  • Respondent Type Number Percentage
  •  
    Standard-setting body
    21
    27%
  •  
    Accountancy body
    17
    22%
  •  
    Preparer / Industry
    13
    17%
  •  
    Accounting firm
    10
    13%
  •  
    Preparer / Representative body
    8
    10%
  •  
    Individual
    5
    6%
  •  
    Regulator / Securities
    2
    3%
  •  
    Academia or Think tank
    1
    1%
  •  
    User / representative body
    1
    1%
  • Total 78 100%

Geographic region

  • Geographic Region Number Percentage
  •  
    Europe
    34
    44%
  •  
    Asia
    16
    21%
  •  
    Global
    9
    12%
  •  
    Africa
    5
    6%
  •  
    Oceania
    5
    6%
  •  
    South America
    5
    6%
  •  
    North America
    4
    5%
  • Total 78 100%