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ED: Draft Equity Method of Accounting – IAS 28 Investments in Associates and Joint Ventures (revised)
- 26 September 2024
- Financial Reporting
- South African Accounting Academy
Summary:
The IFRS Foundation’s International Accounting Standards Board (IASB) has published the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised).
Article:
The Exposure Draft:
- proposes amendments to IAS 28 to answer application questions about how to apply the equity method of accounting; and
- complements the proposed amendments to IAS 28 by proposing new disclosure requirements to IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements.
The IASB expects the proposed amendments will reduce diversity in practice and provide users of financial statements with more comparable and useful information.
IAS 28 was first issued in 1989.
The IASB has taken this opportunity to reorder the Standard in a logical and consistent way to help companies apply it.
The deadline for comments is 20 January 2025.
You can access the 66-page Basis of Conclusions document at https://www.ifrs.org/content/dam/ifrs/project/equity-method/exposure-draft/iasb-ed-2024-7-bc-equity-method.pdf
Click here to download the 56-page Exposure Draft:
Relevance to Auditors, Independent Reviewers & Accountants:
- As an auditor and independent reviewer, you need to consider your clients’ compliance with accounting standards.
- Auditors, Independent Reviewers and Accountants should be aware of the latest publications and guidance issued by regulators and standard-setting boards, such as the IASB – especially those relating to amended standards.
- As an accountant and compiler of financial statements, you need to consider amendments and proposed amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
Relevance to Your Clients:
- An entity compiling filing financials need to consider amendments and proposed amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
- Entities should demonstrate awareness of annual improvements to accounting standards and the effects on financial reporting.