Skip to content (Press enter)
Show Sections

Current stage

The International Accounting Standards Board (IASB) has concluded discussions and made tentative decisions on:

  1. application questions, about the equity method as set out in IAS 28 Investments in Associates and Joint Ventures;
  2. improvements to disclosure requirements to IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements; and
  3. transitional requirements for the amendments to be proposed to IAS 28.

Read the staff summary of the IASB’s tentative decisions.

The IASB will discuss whether it has satisfied the required due process steps to publish an exposure draft of amendments to IAS 28.

At its April 2023 meeting, the IASB decided to continue to use the expertise of its advisory bodies instead of establishing a consultative group.

IASB® Update November 2023

The IASB met on 14 November 2023 to continue its discussions on the Equity Method project and decide:

  • whether to propose improvements to disclosure requirements for investments in joint ventures and subsidiaries; and
  • the transitional requirements for the proposed amendments to IAS 28 Investments in Associates and Joint Ventures.

Towards an exposure draft—Possible improvements to disclosure requirements for investments in joint ventures and subsidiaries (Agenda Paper 13A)

The IASB tentatively decided to propose:

  1. the same improvements to the disclosure requirements that it has tentatively decided to propose for investments in associates for investments in joint ventures.
    All of the 13 IASB members present agreed with this decision. One member was absent.
  2. that a parent that elects to use the equity method to account for its investments in subsidiaries in separate financial statements would disclose the gains or losses from the parent’s transactions to its subsidiaries.
    Ten of the 13 IASB members present agreed with this decision. One member was absent.

Towards an exposure draft—Transitional provisions (Agenda Paper 13B)

The IASB tentatively decided to propose that an investor or a joint venturer would:

  1. retrospectively apply the requirement to recognise the full gain or loss on all transactions with its associates or joint ventures.
    Twelve of the 13 IASB members present agreed with this decision. One member was absent.
  2. recognise and measure contingent consideration at fair value at the transition date, and recognise any corresponding adjustment to the carrying amount of its investments in associates or joint ventures.
    All of the 13 IASB members present agreed with this decision. One member was absent.
  3. prospectively apply all the other requirements from the transition date.
    All of the 13 IASB members present agreed with this decision. One member was absent.

Next milestone

Exposure Draft