Equity method of accounting — Share of other net asset changes

Date recorded:

The Technical Manager reminded the Board that they had tentatively decided to finalise the proposed amendments to IAS 28 Equity Method: Share of Other Net Asset Changes. During that discussion, two Board members had communicated their intention to dissent from the amendments. Subsequently, one more member had signalled the intention to dissent and two more members had communicated to the staff that they consider dissenting. He asked which Board members supported to continue with the amendments.

One Board member asked whether the reasons for additional Board members intending to dissent were issues that had been discussed and the Board members had reconsidered or issues that had not been discussed. The project manager said that the reason was reconsideration of an issue that had previously been discussed and, therefore, it was a change in opinion for those Board members.

Another Board member supported the suspension of the project. He said that going forward would probably raise concerns in constituencies over the quality of the amendments.

Several members also expressed their concerns with the amendments. One Board member said that, nonetheless, it should be considered that this was result of a recommendation from the IFRS Interpretations Committee.

The Board discussed whether a reconsideration of the issues would be helpful. Some members were reluctant to suspend. The Vice-Chairman, however, thought that reconsidering would not help with the process as the Board was fairly split.

The Chairman called a vote on how many members would like to proceed. Nine of the 16 Board members voted in favour of proceeding with the amendments. The Vice-Chairman said that even if the Board had ten votes in favour of proceeding, this would not be sufficient in his view. The Chairman concluded that suspension was then the only alternative, as, in his view, it would not make sense to redeliberate the topic. He said that the issue might be worth reconsidering depending on the outcome of the research project on the equity method of accounting.

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