The IASB met on June 20, 2023, to continue its discussions on application questions within the scope of the Equity Method project. The IASB tentatively decided not to develop proposals on how an investor applies the equity method when an associate grants an equity-settled share-based payment or a share warrant. The IASB tentatively decided to propose that: on acquisition of an investment in an associate, an investor would recognize contingent consideration as part of the cost of the investment and measure that contingent consideration at fair value; and after the acquisition date: (a) for contingent consideration classified as equity—an investor would account for its subsequent settlement within equity; and (b) for other contingent consideration—an investor would measure it at fair value at each reporting date and recognize changes in fair value in profit or loss.

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