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:
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.
The IASB met on 23 September 2025 to start redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).
The IASB decided to add to the scope of the project the application question ‘How does an investor recognise acquisition-related costs when applying the equity method?’.
All 12 IASB members agreed with this decision.
The IASB decided not to add to the scope of the project an application question on obtaining significant influence over an associate that does not constitute a business.
All 12 IASB members agreed with this decision.
The IASB also decided not to add to the scope of the project an application question on qualifying criteria for using the fair value option in accordance with paragraphs 18–19 of IAS 28.
Ten of 12 IASB members agreed with this decision.
Instead, the IASB decided to explore whether to clarify these paragraphs, which permit specified entities to measure investments within the scope of the Standard at fair value through profit or loss.
All 12 IASB members agreed with this decision.
In considering the feedback on the proposed answer to the application question ‘How does an investor apply the equity method when purchasing an additional interest in an associate while retaining significant influence?’, the IASB decided:
Decide Project Direction
International Accounting Standards Board September 2025