IAS 28 — Long-term interests in associates and joint ventures
Background
IFRS 9 Financial Instruments excludes from its scope interests in associates and joint ventures accounted for in accordance with IAS 28 Investments in Associates and Joint Ventures. However, the IFRS Interpretations Committee received a submission asking whether that scope exclusion applies only to interests in associates and joint ventures to which the equity method is applied, which seemed a point not clear to some stakeholders. Therefore, the IASB intends 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 proposed amendments were originally included in the exposure draft ED/2017/1 Annual Improvements to IFRS Standards 2015–2017 Cycle published on 12 January 2017. However, in May 2017 the Board decided to finalise the amendments as a narrow scope amendment in its own right.
Current status of the project
This project has been completed. The IASB issued Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) on 12 October 2017.
Project milestones
| Date | Development | Comments |
|---|---|---|
| October 2015 | 2015-2017 cycle formally added to IASB agenda | |
| 12 January 2017 | ED/2017/01 Annual Improvements to IFRS Standards 2015–2017 Cycle | Comments requested by 12 April 2017 |
| May 2017 | IASB decides to finalise the amendments regarding IAS 28 as a narrow scope amendment in its own right | |
| 12 October 2017 | Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) issued | Effective from 1 January 2019, early application permitted |
