The International Accounting Standards Board (IASB) has launched a consultation proposing narrow-scope amendments to IAS 28 Investments in Associates and Joint Ventures, seeking to clarify which entities may elect to measure such investments at fair value through profit or loss .
Addressing Inconsistent Application
The proposals respond to stakeholder feedback indicating significant diversity in how the fair value option in IAS 28 is currently applied amid IFRS 18 Implementation Concerns. This inconsistency has become particularly consequential as entities prepare for IFRS 18 Presentation and Disclosure in Financial Statements, effective 1 January 2027, with more companies considering electing this option under the new presentation framework .
Accelerated Timeline for Implementation
The IASB has established a 60-day comment period, closing 20 April 2026, to ensure any amendments can be finalised by mid-2026 . This accelerated timeline accommodates jurisdictions requiring at least six months to complete endorsement processes before the IFRS 18 effective date .
The Due Process Oversight Committee approved this shortened period, noting the amendments are “very narrow” – affecting approximately “two or three lines” in two paragraphs – and represent clarifications of existing requirements rather than substantive new guidance .
Practical Implications
From a technical accounting perspective, the amendments aim to resolve ambiguity regarding which specified entities qualify for the fair value option under paragraph 18 of IAS 28 . The clarification is expected to enhance consistency in how income and expenses are presented in profit or loss under IFRS 18 .
For Accountants, the narrow scope suggests limited implementation burden, though entities currently applying or considering the fair value option should monitor developments closely. The accelerated timeline means affected entities may need to assess potential impacts on their IFRS 18 implementation plans earlier than typical amendment cycles would allow.
The IASB intends to complete the amendments by mid-2026, positioning them for concurrent effectiveness with IFRS 18.
Source: IFRS, 19 February 2026