Equity Method – International Accounting Standards Board

Date recorded:

At its meeting on September 20-22, 2022, the IASB met to continue its discussions on these two application questions: (i) how to measure the portion of an investment to be derecognized on the        disposal of an interest in an associate entity while retaining significant influence; and (ii) how to apply the equity method to changes in an associate’s net assets that change the investor’s ownership interest. The IASB also started to discuss the application question (iii) how should an investor recognize gains and losses that arise from the sale of subsidiary to an associate, applying the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The Board made a tentative decision re item (ii) and asked the staff to carry out further research with respect to items (i) and (iii).  The IASB will discuss the project’s direction and other application questions within the scope of the project at future meetings.

Review the IASB Update and podcast on the Board's Web site.

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