Equity Method – International Accounting Standards Board
The IASB met on November 14, 2023, to continue its discussions and decide whether to propose improvements to disclosure requirements for investments in joint ventures and subsidiaries; and the transitional requirements for the proposed amendments to IAS 28 Investments in Associates and Joint Ventures.
The IASB tentatively decided to propose the same improvements to the disclosure requirements that it has tentatively decided to propose for investments in associates for investments in joint ventures; and that a parent that elects to use the equity method to account for its investments in subsidiaries in separate financial statements would disclose the gains or losses from the parent’s transactions to its subsidiaries.
The IASB tentatively decided to propose that an investor or a joint ventures would retrospectively apply the requirement to recognize the full gain or loss on all transactions with its associates or joint ventures; recognize and measure contingent consideration at fair value at the transition date, and recognize any corresponding adjustment to the carrying amount of its investments in associates or joint ventures; and prospectively apply all the other requirements from the transition date.
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