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On 19 September 2024 the International Accounting Standards Board (IASB) published the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x). The Exposure Draft sets out:

  • proposed amendments to IAS 28 to answer application questions about how to apply the equity method of accounting; and
  • proposals to improve the disclosure requirements in IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements to complement the proposed amendments to IAS 28.

As part of the IASB’s work to improve the understandability of IFRS Accounting Standards, the IASB is proposing to re-order the requirements in IAS 28 in a more logical and consistent way. A copy of IAS 28 (revised 202x), as set out in the Exposure Draft, marked-up against the current version of IAS 28, is available.

The comment period closed on 20 January 2025.

At its May 2025 meeting, the IASB discussed a summary of the feedback from comment letters and from outreach activities on its Exposure Draft. The IASB was not asked to make any decisions.

IASB® Update October 2025

The IASB met on 29 October 2025 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

Acquisition-related costs (Agenda Paper 13A)

The IASB tentatively decided to require acquisition-related costs incurred by an investor or joint venturer:

  1. to obtain significant influence or joint control—to be recognised as an expense in profit or loss in the period in which the costs are incurred.
  2. to purchase an additional ownership interest in an associate or joint venture—to be recognised as an expense in profit or loss in the period in which the costs are incurred.

Ten of 12 IASB members agreed with these decisions.

The IASB also tentatively decided to require an investor or joint venturer to apply the requirements in (a)–(b) prospectively from the transition date.

All 12 IASB members agreed with this decision.

Transactions with associates (Agenda Papers 13B–13C)

In considering the feedback on the proposal to recognise in full gains or losses resulting from all transactions with associates and joint ventures, the IASB decided to undertake further work:

  1. to understand the concerns of respondents who said the proposals could increase opportunities for earnings management; and
  2. to understand whether enhancing disclosures or adding guidance might resolve these concerns.

All 12 IASB members agreed with this decision.

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