IAS 28 — Reflecting other net asset changes when applying the equity method of accounting


During 2012, the IFRS Interpretations Committee recommended that the IASB amend IAS 28 Investments in Associates and Joint Ventures (2011) to provide guidance on whether and where an investor should account for its share of the changes in the net assets of the associate that are not recognised in profit or loss or other comprehensive income (OCI) of the associate (i.e., ‘other net asset changes’).

Given the significant change this amendment may have on current practice, the IASB commenced this project as a separate project/amendment, rather than as part of the annual improvement process.


Current status of the project

This project was discontinued in 2014.  The IASB published Exposure Draft ED/2012/3 Equity Method: Share of Other Net Asset Changes on 22 November 2012, with a comment deadline of 22 March 2013.  At its May 2014 meeting, the IASB considered finalising the amendments, but there was insufficient members in favour of approving the amendments.  In light of this vote, IASB will not proceed with the proposed amendments.


Project milestones

July 2012 Project added to the IASB agenda Separate amendment rather than annual improvement
22 November 2012 ED/2012/3 Equity Method: Share of Other Net Asset Changes published Comment deadline 22 March 2013
May 2014 IASB decided not to proceed with the proposed amendments The issue may be reconsidered depending on the outcome of the research project on the equity method of accounting

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