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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 June 2026

The IASB met on 24 June 2026 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

Separate financial statements (Agenda Paper 13A)

The IASB discussed the feedback related to its proposals in the Exposure Draft on applying the equity method in an entity’s separate financial statements.

The IASB tentatively decided that:

  1. an investor that applies the equity method to associates or joint ventures in its separate financial statements may choose either to restrict recognition of gains or losses (except for gains or losses on transfer of businesses, which would be recognised in full) or to recognise gains and losses in full on all transactions with associates. The investor need not apply the same accounting policy to the recognition of gains and losses on transactions with associates in its consolidated and separate financial statements.

    All 13 IASB members agreed with this decision.

  2. a parent that applies the equity method to subsidiaries in its separate financial statements may choose either to restrict the recognition of gains or losses or to recognise gains and losses in full on all transactions with subsidiaries.

    Seven of 13 IASB members agreed with this decision.

The IASB also tentatively decided to withdraw its proposals in the Exposure Draft that:

  1. an entity does not remeasure its previously held interest in an investment accounted for using the equity method if it acquires control of that investment and continues applying the equity method; and
  2. an entity does not remeasure a retained interest in a former subsidiary if it loses control of the subsidiary and continues applying the equity method to the retained interest.

    Ten of 13 IASB members agreed with this decision.

The IASB also decided not to add to the scope of the project application questions on measurement of cost, step acquisition and loss of control of an investment in a subsidiary accounted for at cost in separate financial statements.

All 13 IASB members agreed with this decision.

Proposed amendments to the disclosure requirements in IFRS 12 Disclosure of Interests in Other Entities (Agenda Paper 13B)

The IASB discussed the feedback on its proposed amendments to the disclosure requirements for associates in IFRS 12.

The IASB tentatively decided to confirm its proposals in the Exposure Draft to require an investor to disclose:

  1. gains or losses from other changes in its ownership interest;
  2. information about contingent consideration arrangements; and
  3. a reconciliation between the opening and closing carrying amount for its associates.

The IASB also tentatively decided to confirm its proposal in the Exposure Draft to introduce a disclosure objective to disclose information that would enable users of financial statements to understand changes in the carrying amount of investment in associates.

All 13 IASB members agreed with these decisions.

The IASB tentatively decided that, if an investor applies the relief from measuring at fair value the additional share of the associate’s or joint venturer’s identifiable assets and liabilities, when purchasing an additional ownership interest and retaining significant influence, the investor discloses the use of that relief.

Nine of 13 IASB members agreed with this decision.

Proposed amendments to the disclosure requirements in IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 13C)

The IASB discussed the feedback on its proposed amendments to the disclosure requirements in IFRS 19.

The IASB tentatively decided:

  1. to confirm its proposal in the Exposure Draft to amend IFRS 19 to require an eligible subsidiary to disclose information about contingent consideration arrangements; and
  2. not to require an eligible subsidiary to disclose a reconciliation between the opening and closing carrying amount of its associates.

All 13 IASB members agreed with this decision.

The IASB tentatively decided that, if an eligible subsidiary applies the relief from measuring at fair value the additional share of an associate’s identifiable assets and liabilities, the eligible subsidiary is not required to disclose the use of that relief when purchasing an additional ownership interest and retaining significant influence.

Twelve of 13 IASB members agreed with this decision.

Next milestone

Final Amendments