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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 March 2024

The IASB met on 20 March 2024 to discuss:

  • transitional requirements for the proposed amendments to IAS 28 Investments in Associates and Joint Ventures; and
  • the due process steps for the prospective exposure draft proposing amendments to IAS 28 (exposure draft).

Towards an exposure draft—Transitional requirements (Agenda Paper 13A)

The IASB tentatively decided:

  1. to clarify its tentative decision that an investor or joint venturer would retrospectively apply the requirement to recognise the full gain or loss on all transactions with its associates or joint ventures. An investor or joint venturer would apply the proposed requirement by recognising the remaining portion of the restricted gain or loss. The cumulative effect of that gain or loss would be recognised as an adjustment to the opening balance of retained earnings at the transition date in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
    Thirteen of 14 IASB members agreed with this decision.
  2. to propose that if, on initial application of the proposed requirements, an investor or joint venturer had estimated, at the transition date, the recoverable amount of an investment in an associate or joint venture, the investor or joint venturer would:
    1. reduce the carrying amount to that recoverable amount; and
    2. recognise the impairment loss in the opening balance of retained earnings.
    Thirteen of 14 IASB members agreed with this decision.
  3. to propose that an investor or joint venturer that chooses (or is required by legislation) to present more than one period of comparative information may present comparative information for any additional prior periods:
    1. adjusted for the effects of the proposed requirements—the transition date would be the beginning of the earliest adjusted comparative period presented; or
    2. unadjusted for the effects of the proposed requirements—the investor or joint venturer would identify the comparative information as unadjusted and disclose that the comparative information has been prepared on a different basis, explaining that basis.
    All 14 IASB members agreed with this decision.
  4. to propose an exemption from disclosing the information required by paragraph 28(f) of IAS 8 for the current period and for any additional prior period that the investor or joint venturer presents unadjusted.
    All 14 IASB members agreed with this decision.

Towards an exposure draft—Due process and permission to begin the balloting process (Agenda Paper 13B)

The IASB set a 120-day comment period for the exposure draft.

All 14 IASB members agreed with this decision.

All 14 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 exposure draft.

One IASB member indicated an intention to dissent from the proposals in the exposure draft.

Next milestone

Exposure Draft