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IAS 28 — Investments in Associates and Joint Ventures (2011)

Effective date:

Effective for annual periods beginning on or after January 1, 2018, except for subsequent amendments. Earlier application of IAS 28 Investments in Associates and Joint Ventures (2011) is permitted if IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) are applied at the same time.

Published by the IASB:

May 2011

Included in Part I of CPA Canada Handbook:

September 2011

Reach out to our IAS 28 Specialist

Kerry Danyluk

Martin Roy

Overview

IAS 28 Investments in Associates and Joint Ventures (as amended in 2011) outlines how to apply, with certain limited exceptions, the equity method to investments in associates and joint ventures. The standard also defines an associate by reference to the concept of "significant influence", which requires power to participate in financial and operating policy decisions of an investee (but not joint control or control of those polices).

History of IAS 28

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.

Date1

Development

Comments

Included in Part I of the CPA Canada Handbook2

May 12, 2011

IAS 28 Investments in Associates and Joint Ventures (2011) issued (supersedes IAS 28 (2003))

 

This standard was amended to incorporate the accounting for joint ventures because the equity method is now applicable to both joint ventures and associates. The disclosure requirements from IAS 28 (as revised in 2003) have been included in IFRS 12.

September 2011

September 11, 2014

Amended by Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

 

The amendments set out that, on a sale or contribution of assets to a joint venture or associate or on a loss of control when joint control or significant influence is retained in a transaction involving an associate or a joint venture, the extent of any gain or loss recognized depends on whether the assets or subsidiary constitute a business, as defined in IFRS 3 Business Combinations.  When the assets or subsidiary constitute a business, any gain or loss is recognized in full; when the assets or subsidiary do not consistent a business, the entity’s share of the gain or loss is eliminated.

The amendments apply prospectively for transactions occurring in annual periods beginning on or after January 1, 2016. Earlier application is permitted.

November 2014

December 18, 2014

Amended by Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) (project history)

The amendments address issues that have arisen in the context of applying the consolidation exception for investment entities.

Effective for annual periods beginning on or after January 1, 2016. Earlier application is permitted.

April 2015

December 17, 2015

Amended by Deferring the Effective Date of the September 2014 Amendments to IFRS 10 and IAS 28

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) has been revised to incorporate the amendment issued by the International Accounting Standards Board (IASB) in December 2015. The amendment defers indefinitely the effective date of the amendments to IFRS 10 and IAS 28 issued by the IASB in September 2014, with earlier application permitted. Accordingly, the amendments to IFRS 10 and IAS 28 have been returned to the "IFRSs issued but not yet effective" section.

February 2016

De­cem­ber 8, 2016

Amended by Annual Improvements to IFRS Standards 2014–2016 Cycle

The amendments clarify that the election to measure at fair value through profit or loss an investment in an associate or a joint venture that is held by an entity that is a venture capital organization, or other qualifying entity, is available for each investment in an associate or joint venture on an investment-by-investment basis, upon initial recognition.

The amendments apply retrospectively and are effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

March 2017

October 12, 2017

Amended by Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) to clarify that an entity applies IFRS 9 to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied.

The amendments are effective for periods beginning on or after January 1, 2019. Earlier application is permitted. This will enable entities to apply the amendments together with IFRS 9, if they wish so, but leaves other entities additional implementation time.

The amendments are to be applied retrospectively, but they provide transition requirements similar to those in IFRS 9 for entities that apply the amendments after they first apply IFRS 9. They also include relief from restating prior periods for entities electing, in accordance with IFRS 4 to apply the temporary exemption from IFRS 9. Full retrospective application is permitted if that is possible without the use of hindsight.

 

November 2017

 Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2.  Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

The above summary does not include details of consequential amendments made as the result of other projects.

Related Interpretations

  • None

Related IFRIC Agenda Rejection Notices

Summary of items not added to the IFRS Interpretations Committee's agenda in relation to both IAS 28 Investments in Associates and Joint Ventures (2011) and earlier versions of IAS 28 Investments in Associates.

The rejection notices are available in our Deloitte Global section.

  • IAS 28 and IFRS 3 — Associates and common control (May 2013)
  • IAS 27 & IAS 28 — Impairment of investments in associates in separate financial statements (January 2013)
  • IAS 28 — Impairment of investments in associates (July 2009)
  • IAS 28 — Venture capital consolidations and partial use of fair value through profit or loss (July 2009)
  • IAS 28 — Potential effect of IFRS 3 and IAS 27 on equity method accounting (July 2009)
  • IAS 28 — Potential effect of IFRS 3 and IAS 27 on equity method accounting (March 2009)
  • IAS 28  — Equity method application (April 2003)
  • IAS 28  — Possible amendment to SIC-12 (November 2002)
  • IAS 28  — Reciprocal interests (July 2002)
  • IAS 28  — The effects of rights of veto on control (July 2002)
  • IAS 28  — Investments after discontinuing equity accounting (February 2002)

AcSB’s IFRS Discussion Group meetings

  • September 13, 2016 - IFRS 9 and IAS 28: Measurement of Long-term Interests
  • May 31, 2016 - IFRS 9 and IAS 28: Measurement of Long-term Interests
  • September 10, 2015 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
  • June 12, 2014 - IFRS 11: Accounting for Changes in Classification between Joint Ventures and Joint Operations

Amendments under consideration

Correction list for hyphenation

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