IASB: Exposure Draft: Proposed amendments to fair value option in IAS 28 re investments in associates and joint ventures

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IASB: Exposure Draft: Proposed amendments to fair value option in IAS 28 re investments in associates and joint ventures

• 13 April 2026
• Accounting
• South African Accounting Academy

Summary:

The IASB has published proposed amendments to clarify which investments a company is eligible to measure using the fair value option in IAS 28 Investments in Associates and Joint Ventures.

Article:

This Exposure Draft proposes amending paragraphs 18–19 of IAS 28 to clarify that an entity that has a main business activity of investing in particular types of assets (as set out in paragraph 49(a) of IFRS 18) is eligible to elect the fair value option in IAS 28. The IASB expects the proposed amendments to provide timely clarity for affected entities and reduce diversity in how stakeholders interpret which entities are eligible to use the fair value option in IAS 28.

This consultation responds to feedback from stakeholders that identified diversity in how the fair value option in IAS 28 is applied and the effects of that diversity on the classification of income and expenses in the statement of profit or loss in accordance with IFRS 18 Presentation and Disclosure in Financial Statements. This issue has taken on increased importance as more companies are considering whether to elect that option as part of implementing IFRS 18.

The IASB’s proposed narrow-scope amendments aim to improve consistency in application and provide timely clarity ahead of the effective date of IFRS 18.

Deadline for comments is 20 April 2026. 

The IASB plans to finalise any amendments by mid-2026, allowing jurisdictions to bring the amendments into national legislation.

Click here to download the 18-page Exposure Draft document:

https://www.ifrs.org/content/dam/ifrs/project/amendments-to-the-fair-value-option-ias-28/ed-iasb-2026-1-amendments-fvo-ias-28.pdf 

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.
• 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.

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