Basis for Conclusions – Amendments to Section 3051, Investments

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May 31, 2019

On May 31, 2019, the Ac­count­ing Stan­dards Board (AcSB) re­leased this doc­u­ment which sets out how the AcSB reached its con­clu­sions on its project to amend Section 3051, and its dis­cus­sions on sig­nif­i­cant mat­ters aris­ing from com­ments re­ceived and is­sues raised in re­sponse to its Ex­po­sure Draft.

Stakeholders informed the AcSB that the scope of paragraph 3051.07A is unclear. Specifically, stakeholders observed that it was not clear whether this paragraph, which relates to the application of the cost method, also applies to interests in jointly controlled enterprises accounted for using that method. Consequently, the Board decided to amend Section 3051 to clarify that paragraph 3051.07A also applies to investments in jointly controlled enterprises (JCEs) accounted for using the cost method.

The amendment is applicable for annual financial statements relating to fiscal years beginning on or after January 1, 2020, with earlier application permitted.

Download the Basis for Conclusions on the AcSB's website.

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