ASBJ paper on the equity method of accounting

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03 Sep 2021

The Accounting Standards Board of Japan (ASBJ) has published a paper 'Perspectives on the Equity Method of Accounting'.

The paper proposes principles that would clarify when to focus on the aspect of one-line consolidation and when to focus on the aspect of a measurement basis to address the current practical issues arising from applying the equity method of accounting, with the understanding that the existing requirements in IAS 28 Investments in Associates and Joint Ventures have both aspects of one-line consolidation and a measurement basis.

The ASBJ has published the paper with a view to contribute to the global debate surrounding the equity method of accounting. The ASBJ will present the paper for discussion at the IFASS meeting in September and at the ASAF meeting in October.

Please click to access the paper on the ASBJ website.

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