Skip to content
Show Sections

Current stage

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 February 2026

The IASB met on 25 February 2026 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

 

Impairment of an investment—Impairment indicators (Agenda Paper 13A)

The IASB tentatively decided to retain guidance from IAS 28 Investments in Associates and Joint Ventures:

  1. to explain that a single, discrete event might not by itself indicate an impairment and that instead the combined effect of several events might indicate an impairment; and
  2. to clarify that the investor is required to consider observable information that comes to its attention when the investor determines whether its net investment in an associate might be impaired.

All 13 IASB members agreed with this decision.

The IASB tentatively decided:

  1. to proceed with its proposal to replace ‘decline in the fair value of an investment … below its cost’ in paragraph 41C of IAS 28 with ‘decline in the fair value … to less than its carrying amount’;
  2. to proceed with its proposal to remove from IAS 28 the reference to a ‘significant or prolonged’ decline in fair value;
  3. to proceed with its proposal to explain that an investor considers observable price information—such as the quoted market price, the price paid to purchase an additional interest in the associate, or the price received to sell part of the interest—when the investor determines whether its net investment might be impaired; and
  4. to clarify that for a publicly traded associate, the investor considers the quoted market price at the reporting date.

All 13 IASB members agreed with this decision.

 

 

Impairment of an investment—Other matters (Agenda Paper 13B)

The IASB tentatively decided:

  1. not to move the impairment requirements from IAS 28 to IAS 36 Impairment of Assets; and
  2. not to consider two application issues relating to the reversal of an impairment loss.

All 13 IASB members agreed with this decision.

 

Transactions with Associates—Feedback from further work (Agenda Paper 13C)

The IASB met to discuss feedback from meetings with stakeholders on its proposals in the Exposure Draft related to gains or losses from transactions with associates.

The IASB was not asked to make any decisions.

Next milestone

Decide Project Direction