IASB seeks views on clarifying fair value option in IAS 28

The International Accounting Standards Board (IASB) has opened a consultation connected proposed, targeted changes to IAS 28 Investments successful associates and associated ventures.

The determination aims to clarify which investments are eligible to beryllium measured utilizing the just worth option.

Under IASB requirements, the just worth enactment allows an entity to irrevocably designate definite fiscal assets oregon liabilities astatine just worth done nett oregon nonaccomplishment connected archetypal recognition. The prime is restricted to cases that destruct oregon importantly trim accounting mismatches.

The consultation follows stakeholder feedback that highlighted inconsistent signifier successful applying this option.

Those differences impact however income and expenses are classified successful the connection of nett oregon nonaccomplishment erstwhile companies use IFRS 18 Presentation and Disclosure successful Financial Statements.

The taxable has go much pressing arsenic a increasing fig of companies measurement up whether to elite the just worth enactment portion preparing for IFRS 18 implementation.

In response, the committee is proposing constrictive amendments intended to enactment much accordant usage of the requirements and to springiness preparers clearer absorption earlier IFRS 18 becomes effective.

To conscionable that timeline, the IASB has acceptable a shorter remark play than usual.

The consultation is unfastened until 20 April 2026, and the committee plans to implicit immoderate changes by mid‑2026 truthful that jurisdictions person clip to incorporated the amendments into nationalist legislation.

IASB members make and o.k. IFRS Accounting Standards.

In August past year, the IASB issued amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures aft completing its planned updates to the standard.

"IASB seeks views connected clarifying just worth enactment successful IAS 28" was primitively created and published by International Accounting Bulletin, a GlobalData owned brand.

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