Equity Method – International Accounting Standards Board

Date recorded:

At its meeting on April 25-27, 2023, the IASB continued its discussions on application questions within the scope of the Equity Method research project. The IASB also discussed moving the project to its standard-setting work plan and working towards publishing an exposure draft as the next due process step. The IASB tentatively decided to propose that an investor would account for, and include in the carrying amount of its investment in an associate, a deferred tax asset (or liability) arising from recognizing its share of the associate’s net identifiable assets and liabilities at fair value. The IASB decided (i) to move the Equity Method research project to its standard-setting work plan; (ii) to continue to use the expertise of its advisory bodies instead of establishing a consultative group; and (iii) to update the project’s objective so that it is now: 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 where possible. The IASB also decided to work towards publishing an exposure draft as the next due process step.

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

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