Equity Method

The IASB met on 23 September 2026 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

Transactions with associates—Implication for IAS 27 Separate Financial Statements (Agenda Paper 13A)

The IASB discussed the disclosure requirements in IAS 27 for an entity that uses the equity method to account for investments in subsidiaries, associates or joint ventures in its separate financial statements.

The IASB tentatively decided:

1. to withdraw the proposal in the Exposure Draft that would require a parent to disclose gains or losses from ‘downstream’ transactions with subsidiaries accounted for using the equity method;
2. to require a parent to disclose its accounting policy for recognising gains or losses from transactions with investments in subsidiaries, associates or joint ventures accounted for using the equity method in its separate financial statements; and
3. not to add any other disclosure requirements to IAS 27 for separate financial statements.

All 12 IASB members agreed with these decisions.

Sweep issues (Agenda Paper 13B)

The IASB tentatively decided to retain paragraph 55 of the Exposure Draft, which states that many of the procedures that are appropriate for applying the equity method are similar to the consolidation procedures described in IFRS 10 Consolidated Financial Statements.

All 12 IASB members agreed with this decision.

The IASB tentatively decided to require an investor that uses the exemption from disclosing gains or losses from transactions with associates to disclose that it has done so.

All 12 IASB members agreed with this decision.

The IASB tentatively decided:

1. to require that, when an investor applies the undue cost or effort exemption on transition, the investor make the assessment either:
   1. collectively for all gains and losses from past transactions with that associate for which a portion remains unrecognised at the transition date; or
   2. individually for each such gain or loss; and
2. to require that, for associates for which an investor applies the undue cost or effort exemption, the investor apply its new accounting policy prospectively to gains and losses from transactions with those associates occurring after the transition date.  

All 12 IASB members agreed with this decision.

Transactions with associates—Implications for IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 13C)

The IASB tentatively decided to require an eligible subsidiary that applies IFRS 19 to disclose its accounting policy for recognising gains or losses from transactions with associates and joint ventures.

All 12 IASB members agreed with this decision.

The IASB tentatively decided not to require an eligible subsidiary that applies IFRS 19 to disclose:

1. the gains or losses from ‘downstream’ transactions with its associates and joint ventures if the subsidiary chooses to recognise gains or losses in full;  
2. the gains or losses from ‘upstream’ and ‘downstream’ transactions with its associates and joint ventures if the subsidiary chooses to restrict the recognition of gains or losses; and 
3. the nature of transactions with associates and joint ventures and whether they are included in the disclosure of gains and losses. 

Seven of 12 IASB members agreed with these decisions.

The IASB tentatively decided to require an eligible subsidiary that applies IFRS 19 and chooses to restrict the recognition of gains or losses from transactions with associates and joint ventures to disclose the amount of gains and losses restricted at the end of the period and where they are included in the statement of financial position.

All 12 IASB members agreed with this decision.

The IASB tentatively decided not to require an eligible subsidiary that applies IFRS 19 to disclose the line items in the statement of comprehensive income in which the restricted gains and losses are recognised. 

Eleven of 12 IASB members agreed with this decision.

The IASB tentatively decided:

1. to require an eligible subsidiary that applies IFRS 19 and prepares separate financial statements in accordance with IAS 27 to disclose the subsidiary’s accounting policy for the recognition of gains or losses from transactions with subsidiaries, associates or joint ventures accounted for using the equity method; and 
2. to withdraw the proposal in the Exposure Draft to require an eligible subsidiary that is a parent that uses the equity method to account for its investments in subsidiaries to disclose gains or losses from ‘downstream’ transactions with those subsidiaries. 

All 12 IASB members agreed with this decision. 

The IASB tentatively decided:

1. not to add to IFRS 19 the disclosure objective to be added to paragraph 20 of IFRS 12 Disclosure of Interests in Other Entities; and 
2. not to require an eligible subsidiary that applies IFRS 19 to disclose a reconciliation between the opening and closing balance of restricted gains and losses. 

All 12 IASB members agreed with this decision.

Effective date and early application (Agenda Paper 13D)

The IASB considered the effective date of the revised IAS 28.

The IASB tentatively decided to require an investor to apply the revised IAS 28 for annual reporting periods beginning on or after 1 January 2029, with early application permitted, on the premise that the revised IAS 28 is issued in the first half of 2027. If an investor applies the revised IAS 28 before the effective date, the investor would be required to disclose that it has done so. 

Nine of 12 IASB members agreed with this decision.

Due process (Agenda Paper 13E)

The IASB discussed the re-exposure criteria and due process requirements in the Due Process Handbook.

The IASB decided to issue the revised IAS 28 without re-exposure.

All 12 IASB members agreed with this decision.

All 12 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the revised IAS 28.

One IASB member indicated an intention to dissent from issuing the revised IAS 28.

The IASB decided to begin the balloting process.

All 12 IASB members agreed with this decision.