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The International Accounting Standards Board (IASB) concluded discussions on application questions, about the equity method as set out in IAS 28 Investments in Associates and Joint Ventures, for investments in associates. The IASB will continue its discussions on the project, including on the implications of applying its tentative decisions to investments other than those in associates accounted for using the equity method.

Read a summary of the IASB's tentative decisions on application questions.

At its April 2023 meeting, the IASB decided to move the Equity Method research project to its standard-setting work plan, work towards publishing an exposure draft as the next due process step and continue to use the expertise of its advisory bodies instead of establishing a consultative group.

IASB® Update July 2023

The IASB met on 26 July 2023 to continue its discussions on application questions within the scope of the Equity Method project.

Towards an exposure draft—Impairment of investments in associates (Agenda Paper 13A)

The IASB tentatively decided to propose amendments to IAS 28 Investments in Associates and Joint Ventures:

  1. to change the term ‘cost’ to ‘carrying amount’ in paragraph 41C of IAS 28.
    All 14 IASB members agreed with this decision.
  2. to add as objective evidence of impairment a purchase price an investor pays for an additional interest in an associate, or a selling price for part of the interest, that is lower than the carrying amount of the investment in the associate at the date of the purchase or sale of that interest.
    All 14 IASB members agreed with this decision.
  3. to remove the term ‘significant or prolonged’.
    Twelve of 14 IASB members agreed with this decision.

Towards an exposure draft—Implications of applying the IASB’s tentative decisions to application questions that were not selected (Agenda Paper 13B)

The IASB decided to expand the project’s scope by adding five application questions that are considered resolved by its tentative decisions made to date.

All 14 IASB members agreed with this decision.