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The International Accounting Standards Board (IASB) is developing answers to remaining application questions on the equity method as set out in IAS 28 Investments in Associates and Joint Ventures.

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

At its April 2023 meeting, the IASB decided:

  1. to move the Equity Method research project to its standard-setting work plan;
  2. to work towards publishing an exposure draft as the next due process step; and
  3. to continue to use the expertise of its advisory bodies instead of establishing a consultative group.

IASB® Update April 2023

The IASB met on 27 April 2023 to continue its discussions on application questions within the scope of the Equity Method research project.

The IASB also discussed moving the project to its standard-setting work plan and working towards publishing an exposure draft as the next due process step.

Initial recognition of an investment in an associate—Deferred taxes (Agenda Paper 13A)

The IASB tentatively decided to propose that an investor would account for, and include in the carrying amount of its investment in an associate, a deferred tax asset (or liability) arising from recognising its share of the associate’s net identifiable assets and liabilities at fair value.

All 14 IASB members agreed with this decision.

Moving the research project to the standard-setting work plan (Agenda Paper 13B)

The IASB decided:

  1. to move the Equity Method research project to its standard-setting work plan;
  2. to continue to use the expertise of its advisory bodies instead of establishing a consultative group; and
  3. to update the project’s objective so that it is now:

To develop answers to application questions about the equity method, as set out in IAS 28 Investments in Associates and Joint Ventures, using the principles derived from IAS 28 where possible.

All 14 IASB members agreed with these decisions.

The IASB also decided to work towards publishing an exposure draft as the next due process step.

Thirteen of 14 IASB members agreed with this decision.

Next milestone

Exposure Draft