The International Accounting Standards Board (IASB) has issued targeted amendments to clarify which investments in associates and joint ventures a company is eligible to measure using the fair value option in IAS 28 Investments in Associates and Joint Ventures.
Why these amendments were necessary
As companies prepare to implement IFRS 18 Presentation and Disclosure in Financial Statements, stakeholders have reported diverse interpretations of how its new requirements interact with the fair value option in IAS 28. This issue has direct consequences for how income and expenses are classified in the statement of profit or loss.
The IASB has acted swiftly to bring consistency ahead of the effective date of IFRS 18.
The amendments are deliberately narrow in scope to address only the specific concerns identified by stakeholders, without disrupting existing practice or creating unintended consequences elsewhere in IFRS Accounting Standards.
Effective date of the amendments
The amendments take effect when a company first applies IFRS 18.
Access the amendments
IFRS Digital subscribers can access Amendments to the Fair Value Option in IAS 28 Investments in Associates and Joint Ventures via the IFRS Standards Navigator. Standalone ePub copies are available to order from the Web Shop.
Followable tags
IFRS Accounting Standards development
IFRS Accounting Standards, Amendments and Interpretations
IFRS 18 Presentation and Disclosure in Financial Statements
IAS 28 Investments in Associates and Joint Ventures
