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In May 2023, the International Accounting Standards Board (IASB) produced a webcast to further explain the Equity Method project’s objective and approach; the IASB’s tentative decisions; and the project’s next steps.

The IASB has moved its Equity Method project from the research programme to the standard-setting work plan.

IFRS Accounting Standards require the application of the equity method of accounting to investments in associates and joint ventures in an investor’s consolidated financial statements. It is also permitted in separate financial statements for investments in subsidiaries, associates and joint ventures.

The project’s objective is 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.

Moving to the standard-setting work plan of this project means that the IASB believes it has enough evidence to develop requirements to answer application questions in the project’s scope.

The IASB plans to publish an exposure draft of proposed amendments for public consultation.