IASB releases Exposure Draft proposing improvements to the equity method
IASB releases Exposure Draft proposing improvements to the equity method
Tier 1 and Tier 2 For-profit entities should note that the International Accounting Standards Board (IASB) has issued Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x). This Exposure Draft as not yet been released in New Zealand, but it is anticipated that the New Zealand Accounting Standards Board will release a New Zealand equivalent in due course.
The IASB has also issued a Snapshot document that provides an overview of the proposed amendments.
The Exposure Draft and the Snapshot may be accessed here or on the Equity Method project page.
We highly recommend that all Tier 1 and Tier 2 for-profit entities that have investments in associates or joint ventures accounted for on the equity method keep a close watch on this project.
For more on the above, please contact your local BDO representative.
The Exposure Draft sets out:
- Proposed amendments to IAS 28 to answer application questions about how to apply the equity method of accounting; and
- Proposals to improve the disclosure requirements in IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements to complement the proposed amendments to IAS 28.
The IASB has also issued a Snapshot document that provides an overview of the proposed amendments.
The Exposure Draft and the Snapshot may be accessed here or on the Equity Method project page.
We highly recommend that all Tier 1 and Tier 2 for-profit entities that have investments in associates or joint ventures accounted for on the equity method keep a close watch on this project.
For more on the above, please contact your local BDO representative.