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IAS 28
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Investments in Associates and Joint
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Ventures
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In April 2001 the International Accounting Standards Board (Board) adopted IAS 28
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Accounting for Investments in Associates , which had originally been issued by the
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International Accounting Standards Committee in April 1989. IAS 28 Accounting for
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Investments in Associates replaced those parts of IAS 3 Consolidated Financial Statements (issued
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in June 1976) that dealt with accounting for investment in associates.
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In December 2003 the Board issued a revised IAS 28 with a new title— Investments in
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Associates . This revised IAS 28 was part of the Board’s initial agenda of technical projects
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and also incorporated the guidance contained in three related Interpretations
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(SIC-3 Elimination of Unrealised Profits and Losses on Transactions with Associates , SIC-20 Equity
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Accounting Method—Recognition of Losses and SIC-33 Consolidation and Equity Method—Potential
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Voting Rights and Allocation of Ownership Interests ).
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In May 2011 the Board issued a revised IAS 28 with a new title— Investments in Associates
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and Joint Ventures.
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In September 2014 IAS 28 was amended by Sale or Contribution of Assets between an Investor
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and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28). These amendments
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addressed the conflicting accounting requirements for the sale or contribution of assets
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to a joint venture or associate. In December 2015 the mandatory effective date of this
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amendment was indefinitely deferred by Effective Date of Amendments to IFRS 10 and IAS 28 .
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In December 2014 IAS 28 was amended by Investment Entities: Applying the Consolidation
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Exception (Amendments to IFRS 10, IFRS 12 and IAS 28). These amendments provided
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relief whereby a non-investment entity investor can, when applying the equity method,
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choose to retain the fair value through profit or loss measurement applied by its
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investment entity associates and joint ventures to their subsidiaries.
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In October 2017, IAS 28 was amended by Long-term Interests in Associates and Joint
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Ventures (Amendments to IAS 28). These amendments clarify that entities apply
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IFRS 9 Financial Instruments to long-term interests in an associate or joint venture to which
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the equity method is not applied.
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Other Standards have made minor consequential amendments to IAS 28. They include
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IFRS 9 Financial Instruments (issued July 2014), Equity Method in Separate Financial
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Statements (Amendments to IAS 27) (issued August 2014), Annual Improvements to
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IFRS® Standards 2014–2016 Cycle (issued December 2016), IFRS 17 Insurance Contracts (issued
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May 2017) and Amendments to References to the Conceptual Framework in IFRS Standards (issued
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March 2018).IAS 28
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© IFRS Foundation A1303
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CONTENTS
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from paragraph
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INTERNATIONAL ACCOUNTING STANDARD 28
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INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
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OBJECTIVE 1
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SCOPE 2
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DEFINITIONS 3
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SIGNIFICANT INFLUENCE 5
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EQUITY METHOD 10
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APPLICATION OF THE EQUITY METHOD 16
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Exemptions from applying the equity method 17
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Classification as held for sale 20
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Discontinuing the use of the equity method 22
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Changes in ownership interest 25
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Equity method procedures 26
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Impairment losses 40
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SEPARATE FINANCIAL STATEMENTS 44
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EFFECTIVE DATE AND TRANSITION 45
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References to IFRS 9 46
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WITHDRAWAL OF IAS 28 (2003) 47
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APPROVAL BY THE BOARD OF IAS 28 ISSUED IN DECEMBER 2003
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APPROVAL BY THE BOARD OF AMENDMENTS TO IAS 28:
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Sale or Contribution of Assets between an Investor and its Associate or
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Joint Venture (Amendments to IFRS 10 and IAS 28) issued in September
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2014
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Investment Entities: Applying the Consolidation Exception (Amendments to
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IFRS 10, IFRS 12 and IAS 28) issued in December 2014
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Effective Date of Amendments to IFRS 10 and IAS 28 issued in
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December 2015
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Long-term Interests in Associates and Joint Ventures (Amendments to
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IAS 28) issued in October 2017
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FOR THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITION
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TABLE OF CONCORDANCE
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FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION
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BASIS FOR CONCLUSIONS
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DISSENTING OPINIONSIAS 28
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A1304 © IFRS Foundation
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International Accounting Standard 28 Investments in Associates and Joint Ventures (IAS 28)
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is set out in paragraphs 1 –47. All the paragraphs have equal authority but retain the
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IASC format of the Standard when it was adopted by the IASB. IAS 28 should be read in
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the context of its objective and the Basis for Conclusions, the Preface to IFRS
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Standards and the Conceptual Framework for Financial Reporting . IAS 8 Accounting Policies,
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Changes in Accounting Estimates and Errors provides a basis for selecting and applying
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accounting policies in the absence of explicit guidance.IAS 28
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© IFRS Foundation A1305
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International Accounting Standard 28
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Investments in Associates and Joint Ventures
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Objective
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The objective of this Standard is to prescribe the accounting for
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investments in associates and to set out the requirements for the
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application of the equity method when accounting for investments in
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associates and joint ventures.
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Scope
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This Standard shall be applied by all entities that are investors with joint
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control of, or significant influence over, an investee.
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Definitions
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The following terms are used in this Standard with the meanings specified:
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An associate is an entity over which the investor has significant influence .
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Consolidated financial statements are the financial statements of a group in
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which assets, liabilities, equity, income, expenses and cash flows of
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the parent and its subsidiaries are presented as those of a single economic
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entity.
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The equity method is a method of accounting whereby the investment is
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