The International Accounting Standards Board (IASB) has launched a public consultation on proposed amendments to IAS 28 Investments in Associates and Joint Ventures. The changes aim to enhance the application of the equity method and provide stakeholders with improved information.
Focus on Application and Disclosure:
The proposals directly address long-standing practical challenges reported by stakeholders concerning IAS 28 (known as SFRS(I) 1-28 in Singapore). Key elements include:
- Enhanced Guidance: Providing additional clarification on applying the equity method to resolve common implementation questions.
- New Disclosure Requirements: Introducing disclosures designed to improve the quality and transparency of information companies provide about their investments in associates and joint ventures.
- Standard Reorganization: Restructuring IAS 28 (originally issued in 1989) to improve its logical flow and usability.
Expected Outcomes:
The IASB anticipates that these amendments will lead to:
- More consistent application of the equity method across entities.
- Increased comparability of financial statements.
- More useful insights for users of financial statements regarding these significant investments.
The IASB actively encourages all stakeholders to review the proposals detailed in Exposure Draft ED/2024/7 and submit comments.
- Accounting Standards Committee Deadline: 25 November 2024.
- IASB Global Deadline: 20 January 2025.
Following the consultation period, the IASB will analyze the feedback received to determine the final amendments.
Source: IFRS News, 19 September 2024.