IASB proposes changes to the equity method

On 19 September 2024, the IASB published an exposure draft on amendments to the equity method, which is used to account for investments in associates and joint ventures. The proposed amendments mainly relate to IAS 28 Investments in Associates and Joint Ventures, but also provide for amendments to other standards, including IFRS 12 Disclosure of Interests in Other Entities, IFRS 19 Subsidiaries without Public Accountability: Disclosures and IAS 27 Separate Financial Statements.

The proposal is a response to application issues identified by the IASB with regard to the equity method and is intended to supplement and clarify the existing regulations. In addition, further disclosures will be required in future. The amendments are supposed to reduce differences in accounting practice and thus increase the comparability and usefulness of financial statements.

The deadline for submitting comments is 20 January 2025.

You can download the drafte here.