Project
Specifically, the project aims to provide guidance on how an investor should recognise its 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, or that are not distributions received (‘other net asset changes’).
The issue originated from a submission to the IFRS Interpretations Committee (the Interpretations Committee), which recommended that the IASB amend the Standard. The IASB proposes that an investor should recognise in the investor’s equity its share of the investee’s other net asset changes
In March 2011, the Interpretations Committee received a request to:
- correct an inconsistency between the requirements of paragraphs 3 and 10 of IAS 28 and IAS 1 Presentation of Financial Statements regarding the description and application of the equity method; and
- clarify the accounting for an investor’s 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, or that are not distributions received.
Related standards: IAS 28 Investments in Associates and Joint Ventures …