Skip to content (Press enter)
Show Sections

Current stage

The International Accounting Standards Board (IASB) has concluded its discussions on:

  1. application questions, about the equity method as set out in IAS 28 Investments in Associates and Joint Ventures. It will propose amendments to IAS 28, answering the application questions;
  2. improvements to disclosure requirements to IFRS 12 Disclosure of Interests in Other Entities, forthcoming IFRS Accounting Standard Subsidiaries without Public Accountability: Disclosures 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.

At its March 2024 meeting, the IASB decided it had complied with the applicable due process requirements and undertaken sufficient consultation and analysis to begin the process for balloting the exposure draft of proposed amendments to IAS 28.

The exposure draft is expected to be published in H2 2024. 

IASB® Update June 2024

The IASB met on 19 June 2024 to discuss sweep issues identified while drafting the exposure draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202X).

The IASB tentatively decided:

  1. to propose that if a parent entity applies the equity method to its investment in a subsidiary in its separate financial statements, then loses control of that subsidiary and the former subsidiary becomes an associate, and the parent entity continues to apply the equity method, the parent entity would apply paragraph 24 of IAS 28.

    Thirteen of 14 IASB members agreed with this decision.

  2. to delete from paragraph 32 of IAS 28 ‘included as income in the determination of the entity’s share of the associate or joint venture’s profit or loss’, thereby not specifying the line item in the statement of profit or loss in which an investor includes income and expenses that arise when applying the equity method.

    Thirteen of 14 IASB members agreed with this decision.

  3. to propose that an investor or joint venturer would provide the same disclosures about contingent consideration for purchasing an additional interest in an associate or joint venture as provided on obtaining significant influence or joint control.

    All 14 IASB members agreed with this decision.

  4. to propose that, if an investor or joint venturer has recognised contingent consideration as an equity instrument and measured that equity instrument at fair value at the date the investor obtained significant influence or the joint venturer obtained joint control, the investor would not remeasure that contingent consideration. This requirement would also apply if an investor or joint venturer has purchased an additional interest.

    All 14 IASB members agreed with this decision.

The IASB tentatively decided not to add to the scope of the project the application question ‘in which order does an investor or joint venturer that has previously reduced the carrying amount of the investment to nil, recognise its share of the associate’s or joint ventures comprehensive profits that exceed its share of losses not recognised?’.

Seven of 14 IASB members agreed with this decision. The Chair used his additional casting vote, making the vote eight–seven in favour of the decision.

Next milestone

Exposure Draft