Related Discussions

• Equity Method – International Accounting Standards Board

• Sep 21, 2023

• The IASB met on September 21, 2023, to continue its discussions on the project. he IASB tentatively decided to propose amendments to IFRS 12 Disclosure of Interests in Other Entities. The IASB tentatively decided to propose that an investor disclose the gain or loss from recognizing its share of other changes in its associate’s net assets that change its ownership interest, while it retains significant influence. The IASB tentatively decided to propose that an investor that has entered into a contingent consideration arrangement disclose on obtaining significant influence in an associate (i) the amount recognized as part of the cost of the investment; (ii) a description of the arrangement and the basis for determining the amount of the payment; (iii) an estimate of the range of outcomes (undiscounted) or, if a range cannot be estimated, that fact and the reasons why a range cannot be estimated. If the maximum amount of the payment is unlimited, the investor shall disclose that fact and for each subsequent reporting period until the investor collects or settles the contingent consideration or it is cancelled or expires (i) any changes in the recognized amounts, including any differences arising upon settlement; (ii) any changes in the range of outcomes (undiscounted) and the reasons for those changes; and the valuation techniques and key model inputs used to measure the contingent consideration. The IASB tentatively decided to propose that an investor disclose its gains or losses on transactions to its associates. The IASB tentatively decided to propose that an investor disclose a reconciliation between the opening and closing carrying amount of its investments in associates, to meet the new disclosure objective.

• Equity Method – International Accounting Standards Board

• Jun 20, 2023

• 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.

• Equity Method – International Accounting Standards Board

• Apr 25, 2023

• 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.

• Equity Method – International Accounting Standards Board

• Mar 20, 2023

• At its meeting on March 20-23, 2023, the IASB met to continue its discussions on the application questions within the scope of this project with respect to (a) purchase of an additional interest in an associate while retaining significant influence; and (b) a perceived conflict between IFRS 10, Consolidated Financial Statements, and IAS 28, Investments in Associates and Joint Ventures. Following a discussion, the IASB made tentative decisions with respect to both (a) and (b). The IASB will continue its discussions on the application questions within the scope of the project.

• Equity Method – International Accounting Standards Board

• Jan 24, 2023

• At its meeting on January 24-26, 2023, the IASB met to continue discussing four alternatives to answering the application question on the Equity Method project: 'how should an investor recognize gains and losses that arise from the sale of a subsidiary to its associate, applying the requirements in IFRS 10 and IAS 28?' The IASB was not asked to make any decisions. The IASB asked the staff to continue exploring two of the alternatives discussed in the agenda paper to answering the application question and prepare a decision-making paper for consideration.

• Equity Method – International Accounting Standards Board

• Dec 13, 2022

• At its meeting on December 13-15, 2022, the IASB met to continue its discussions of application questions on the equity method as set out in IAS 28, specifically relating to (a) applying the preferred . approach after the purchase of an additional interest in an associate; (b) purchase of additional interest in an associate and share of unrecognized losses; and (c) recognition of losses and components of comprehensive income. Following its discussions, the IASB made tentative decisions with respect each of (a), (b) and (c). The IASB will continue its discussions on application questions within the scope of the project at future meetings.

• Equity Method – International Accounting Standards Board

• Oct 18, 2022

• At its meeting on October 18-20, 2022, the IASB met to review the progress of its Equity Method research project. The IASB decided to retain the project’s objective and approach.

• Equity Method – International Accounting Standards Board

• Sep 20, 2022

• At its meeting on September 20-22, 2022, the IASB met to continue its discussions on these two application questions: (i) how to measure the portion of an investment to be derecognized on the disposal of an interest in an associate entity while retaining significant influence; and (ii) how to apply the equity method to changes in an associate’s net assets that change the investor’s ownership interest. The IASB also started to discuss the application question (iii) how should an investor recognize gains and losses that arise from the sale of subsidiary to an associate, applying the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The Board made a tentative decision re item (ii) and asked the staff to carry out further research with respect to items (i) and (iii). The IASB will discuss the project’s direction and other application questions within the scope of the project at future meetings.

• Equity Method – International Accounting Standards Board

• Jun 20, 2022

• At its meeting on June 20-22, 2022, the IASB met to continue the discussion, started at its April 2022 meeting, on this application question: how does an investor apply the equity method of accounting when purchasing an additional interest (or disposing of an interest) in an associate while retaining significant influence? The IASB considered an analysis of its preferred approach to applying the equity method of accounting, along with the implications of an alternative approach. The Board made a number of tentative conclusions as a result of its discussion. The IASB will continue discussing the application questions within the scope of the project at a future meeting.

• Equity Method – International Accounting Standards Board

• Apr 25, 2022

• At its meeting on April 25-28, 2022, the IASB met to continue its discussion on the Equity Method research project. The IASB (i) discussed applying the equity method to the purchase of an additional interest in an associate without a change in significant influence; and (ii) reviewed the research findings on changes made to IFRS Accounting Standards arising from the Conceptual Framework, Business Combinations and Joint Arrangements projects. The Board made a number of tentative decisions with respect to (i) and was not asked to make any decisions with respect to (ii) The IASB will continue to discuss other issues related to this project at future meetings.

• Equity Method – International Accounting Standards Board

• Oct 25, 2021

• At its meeting on October 25-28, 2021, the IASB met to continue its discussions on the Equity Method research project. The Board: (i) received an update on application questions within the scope of the project; and (ii) discussed the next steps for the project. The Board decided the staff should research the implications of differences between the principles in IAS 28, Investments in Associates and Joint Ventures, and those in other IFRS Standards relating to business combinations and consolidation before considering the application questions. At a future meeting the Board will review the research findings on differences between the principles in IAS 28 and those in other IFRS Standards relating to business combinations and consolidation. The Board will also discuss application questions within the scope of the project and consider whether other application questions should be included in the scope of the project.

• Equity Method – International Accounting Standards Board

• Jun 22, 2021

• At its meeting on June 22-23, 2021, the IASB met to continue its discussion on the Equity Method project. The Board discussed:  (i) the principles identified as underlying IAS 28, Investments in Associates and Joint Ventures; and (ii) how to develop additional principles to guide how an entity applies the equity method in situations to which none of these underlying principles apply. The Board was not asked to make any decisions. At future meetings, the Board will consider how to apply the underlying principles in response to specific questions.

• Equity Method – International Accounting Standards Board

• Mar 23, 2021

• At its meeting on March 23-24, 2021, the IASB met to receive an update on the Equity Method research project. The update summarized the current status of the project, and detailed the process for selecting application questions to be addressed by the project. The Board was not asked to make any decisions. At a future meeting the Board will review the list of application questions and discuss identified principles in IAS 28, Investments in Associates and Joint Ventures.