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IFRS amendments to IAS 28
IFRS amendments to IAS 28: In April 2001 the International Accounting Standards Board (the Board) adopted IAS 28
Accounting for Investments in Associates, which had originally been issued by the International
Accounting Standards Committee in April 1989. IAS 28 Accounting for Investments in Associates
replaced those parts of IAS 3 Consolidated Financial Statements (issued in June 1976) that dealt
with accounting for investment in associates.
In December 2003 the Board issued a revised IAS 28 with a new title—Investments in Associates.
This revised IAS 28 was part of the Board’s initial agenda of technical projects and also
incorporated the guidance contained in three related Interpretations (SIC-3 Elimination of
Unrealised Profits and Losses on Transactions with Associates, SIC-20 Equity Accounting
Method—Recognition of Losses and SIC-33 Consolidation and Equity Method—Potential Voting Rights
and Allocation of Ownership Interests).
In May 2011 the Board issued a revised IAS 28 with a new title—Investments in Associates and
Joint Ventures.
In September 2014 IAS 28 was amended by Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28). These amendments
addressed the conflicting accounting requirements for the sale or contribution of assets to a
joint venture or associate.
IFRS amendments to IAS 28
IFRS amendments to IAS 28: The effective date
The effective date of this amendment was deferred in December 2015 to a date to be determined by Effective Date of Amendments to IFRS 10 and IAS 28. In December 2014 IAS 28 was amended by Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28). These amendments provided relief whereby a non-investment entity investor can, when applying the equity method, choose to retain the fair value through profit or loss measurement applied by its investment entity associates and joint ventures to their subsidiaries.
In December 2015 the mandatory effective date of the above amendments were indefinitely deferred by the Effective Date of Amendments to IFRS 10 and IAS 28. Other Standards have made minor consequential amendments to IAS 28. They include IFRS 9 Financial Instruments (issued July 2014) and Equity Method in Separate Financial Statements (Amendments to IAS 27) (issued August 2014). IAS 28.
International Accounting Standard 28
| International Accounting Standard 28 Investments in Associates and Joint Ventures (IAS 28) is set out in paragraphs 1–47. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 28 should be read in the context of its objective and the Basis for Conclusions, the Preface to International Financial Reporting Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance. IFRS amendments to IAS 28 Introduction The Standard is effective for annual periods beginning on or after 1 January IFRS 11 Joint Arrangements establishes principles for the financial reporting of An entity applies IFRS 11 to determine the type of joint arrangement in which it Equity method The Standard defines the equity method as a method of accounting whereby the An entity uses the equity method to account for its investments in associates or The Standard provides exemptions from applying the equity method similar to IFRS amendments to IAS 28 The Standard also provides exemptions from applying the equity method when The disclosure requirements for entities with joint control of, or significant IFRS amendments to IAS 28 Objective The investor’s profit or loss includes its share of the investee’s profit or loss and the investor’s other comprehensive income includes its share of the investee’s other comprehensive income.
Significant influence is the power to participate in the financial and operating policy decisions of the invitee but is not control or joint control of those policies. |
IFRS amendments to IAS 28
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