Equity Method (Possible amendments to IAS 28) [Research]

Next steps:

The IASB will continue to discuss other issues related to this project at future meetings

Last updated:

October 2022

Overview

The IASB is undertaking research to assess whether application problems with the equity method as set out in IAS 28 Investments in Associates and Joint Ventures can be addressed in consolidated and individual financial statements by identifying and explaining the principles of IAS 28.

The Board decided that the objective of the project is: to assess whether application problems with the equity method, as set out in IAS 28 Investments in Associates and Joint Ventures, can be addressed in consolidated and individual financial statements by identifying and explaining the principles of IAS 28.

The Board decided that, to achieve this objective, the project should be focused on:

  1. identifying application problems and deciding which of these problems to address; and
  2. addressing these application problems by identifying and explaining the principles that underlie IAS 28.

Identifying and explaining these principles may also help the Board develop new requirements, new application guidance or other amendments to the Standard.

Other developments

March 2022

On March 28, 2022, the IASB staff updated the work plan to indicate that the IASB plans to decide the project direction in April 2022.

January 2022

On January 28, 2022, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in March 2022.

November 2021

On November 23, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q1/2022

October 2020

On October 30, 2020, the IASB staff up­dated the Work Plan to in­di­cate that the Board plans to decide the project direction shortly (no date specified). 

On October 27, 2020, the Board met to discuss the objective and approach of the Equity Method research project. The Board decided that the objective of the project is: to assess whether application problems with the equity method, as set out in IAS 28 Investments in Associates and Joint Ventures, can be addressed in consolidated and individual financial statements by identifying and explaining the principles of IAS 28. The Board decided that, to achieve this objective, the project should be focused on: (a) identifying application problems and deciding which of these problems to address; and (b) addressing these application problems by identifying and explaining the principles that underlie IAS 28. Identifying and explaining these principles may also help the Board develop new requirements, new application guidance or other amendments to the Standard.

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