The International Accounting Standards Board (IASB) has issued an amendments to IFRS 9 Financial Instruments and to IAS 28 Investments in Associates and Joint Ventures to aid implementation on 12 October 2017.
The amendments to the IFRS 9 Financial instruments, allow companies to measure particular prepayable financial assets with so-called negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met – instead of at fair value through profit or loss.
The amendments to IAS 28 Investments in Associates and Joint Ventures clarify that companies account for long-term interests in an associate or joint venture – to which the equity method is not applied – using IFRS 9.
IASB has also published an illustration on how companies apply the requirements in IFRS 9 and IAS 28 to long-term interests in an associate or joint venture.
More details can be viewed from the IFRS website.
Source: IFRS, 17 October 2017