IFRS

IASB issues Long-term Interests in Associates and Joint Ventures

The International Accounting Standards Board (IASB) has published amendments to IAS 28 ‘Investments in Associates and Joint Ventures’ clarifying that companies account for long-term interests in an associate or joint venture - to which the equity method is not applied - using IFRS 9 ‘Financial Instruments’.  This includes long-term interests that, in substance, form part of the entity’s net investment in an associate or joint venture.

IFRS 9 excludes interests in associates and joint ventures accounted for in accordance with IAS 28. However, some stakeholders expressed an opinion that it was not clear whether that exclusion applies only to interests in associates and joint ventures to which the equity method is applied or whether it applies to all interests in associates and joint ventures.

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