This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

EFRAG issues feedback statement on its research paper on its 'Short Discussion Series' paper on the the equity method

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

10 Sep 2014

In January 2014, EFRAG, launched its 'Short Discussion Series' by issuing 'The Equity Method: a measurement basis or one-line consolidation?' A feedback statement with a summary of the comments received from the respondents is now available.

The paper was intended to assist the IASB's work and stimulate debate within Europe in relation to the equity method of accounting. It considered to what extent the equity method in IAS 28 Investments in Associates and Joint Ventures (2011) is a measurement basis, a one-line consolidation or a combination of both.

Responses to the paper (nine in all, five of these from national standard-setters) revealed a diversity of views, indicating that there is no common understanding of the purpose or use of the equity method. What became clear, however, was that a view of the equity method as solely an entity perspective one-line consolidation was not considered appropriate given current conceptual thinking and developments in financial reporting.

Please click for the following information on the EFRAG website:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.