OGRIN0/GPT2-ias-28-ifrs-9 · Datasets at Hugging Face

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profit or loss.
When potential voting rights or other derivatives containing potential voting
rights exist, an entity’s interest in an associate or a joint venture is
determined solely on the basis of existing ownership interests and does not
reflect the possible exercise or conversion of potential voting rights and other
derivative instruments, unless paragraph 13 applies.8
9
10
11
12IAS 28
A1308 © IFRS Foundation
In some circumstances, an entity has, in substance, an existing ownership as a
result of a transaction that currently gives it access to the returns associated
with an ownership interest. In such circumstances, the proportion allocated to
the entity is determined by taking into account the eventual exercise of those
potential voting rights and other derivative instruments that currently give
the entity access to the returns.
IFRS 9 Financial Instruments does not apply to interests in associates and joint
ventures that are accounted for using the equity method. When instruments
containing potential voting rights in substance currently give access to the
returns associated with an ownership interest in an associate or a joint
venture, the instruments are not subject to IFRS 9. In all other cases,
instruments containing potential voting rights in an associate or a joint
venture are accounted for in accordance with IFRS 9.
An entity also applies IFRS 9 to other financial instruments in
an associate or joint venture to which the equity method is not applied. These
include long-term interests that, in substance, form part of the entity’s net
investment in an associate or joint venture (see paragraph 38). An entity
applies IFRS 9 to such long-term interests before it applies paragraph 38
and paragraphs 40–43 of this Standard. In applying IFRS 9, the entity does not
take account of any adjustments to the carrying amount of long-term interests
that arise from applying this Standard.
Unless an investment, or a portion of an investment, in an associate or a joint
venture is classified as held for sale in accordance with IFRS 5 Non-current Assets
Held for Sale and Discontinued Operations , the investment, or any retained interest
in the investment not classified as held for sale, shall be classified as a non-
current asset.
Application of the equity method
An entity with joint control of, or significant influence over, an investee shall
account for its investment in an associate or a joint venture using the equity
method except when that investment qualifies for exemption in accordance
with paragraphs 17–19.
Exemptions from applying the equity method
An entity need not apply the equity method to its investment in an associate
or a joint venture if the entity is a parent that is exempt from preparing
consolidated financial statements by the scope exception in paragraph 4(a) of
IFRS 10 or if all the following apply:
(a) The entity is a wholly-owned subsidiary , or is a partially-owned
subsidiary of another entity and its other owners, including those not
otherwise entitled to vote, have been informed about, and do not
object to, the entity not applying the equity method.
(b) The entity’s debt or equity instruments are not traded in a public
market (a domestic or foreign stock exchange or an over-the-counter
market, including local and regional markets).13
14
14A
15
16
17IAS 28
© IFRS Foundation A1309
(c) The entity did not file, nor is it in the process of filing, its financial
statements with a securities commission or other regulatory
organisation, for the purpose of issuing any class of instruments in a
public market.
(d) The ultimate or any intermediate parent of the entity produces
financial statements available for public use that comply with IFRSs, in
which subsidiaries are consolidated or are measured at fair value
through profit or loss in accordance with IFRS 10.
When an investment in an associate or a joint venture is held by, or is held
indirectly through, an entity that is a venture capital organisation, or a
mutual fund, unit trust and similar entities including investment-linked
insurance funds, the entity may elect to measure that investment at fair value
through profit or loss in accordance with IFRS 9. An example of an
investment-linked insurance fund is a fund held by an entity as the
underlying items for a group of insurance contracts with direct participation
features. For the purposes of this election, insurance contracts include
investment contracts with discretionary participation features. An entity shall
make this election separately for each associate or joint venture, at initial
recognition of the associate or joint venture. (See IFRS 17 Insurance
Contracts for terms used in this paragraph that are defined in that Standard.)
When an entity has an investment in an associate , a portion of which is held
indirectly through a venture capital organisation, or a mutual fund, unit trust
and similar entities including investment-linked insurance funds, the entity
may elect to measure that portion of the investment in the associate at fair
value through profit or loss in accordance with IFRS 9 regardless of whether
the venture capital organisation, or the mutual fund, unit trust and similar
entities including investment-linked insurance funds, has significant
influence over that portion of the investment. If the entity makes that
election, the entity shall apply the equity method to any remaining portion of
its investment in an associate that is not held through a venture capital
organisation, or a mutual fund, unit trust and similar entities including
investment-linked insurance funds.
Classification as held for sale
An entity shall apply IFRS 5 to an investment, or a portion of an investment,
in an associate or a joint venture that meets the criteria to be classified as held
for sale. Any retained portion of an investment in an associate or a joint
venture that has not been classified as held for sale shall be accounted for
using the equity method until disposal of the portion that is classified as held
for sale takes place. After the disposal takes place, an entity shall account for
any retained interest in the associate or joint venture in accordance with

profit or loss.

When potential voting rights or other derivatives containing potential voting

rights exist, an entity’s interest in an associate or a joint venture is

determined solely on the basis of existing ownership interests and does not

reflect the possible exercise or conversion of potential voting rights and other

derivative instruments, unless paragraph 13 applies.8

9

10

11

12IAS 28

A1308 © IFRS Foundation

In some circumstances, an entity has, in substance, an existing ownership as a

result of a transaction that currently gives it access to the returns associated

with an ownership interest. In such circumstances, the proportion allocated to

the entity is determined by taking into account the eventual exercise of those

potential voting rights and other derivative instruments that currently give

the entity access to the returns.

IFRS 9 Financial Instruments does not apply to interests in associates and joint

ventures that are accounted for using the equity method. When instruments

containing potential voting rights in substance currently give access to the

returns associated with an ownership interest in an associate or a joint

venture, the instruments are not subject to IFRS 9. In all other cases,

instruments containing potential voting rights in an associate or a joint

venture are accounted for in accordance with IFRS 9.

An entity also applies IFRS 9 to other financial instruments in

an associate or joint venture to which the equity method is not applied. These

include long-term interests that, in substance, form part of the entity’s net

investment in an associate or joint venture (see paragraph 38). An entity

applies IFRS 9 to such long-term interests before it applies paragraph 38

and paragraphs 40–43 of this Standard. In applying IFRS 9, the entity does not

take account of any adjustments to the carrying amount of long-term interests

that arise from applying this Standard.

Unless an investment, or a portion of an investment, in an associate or a joint

venture is classified as held for sale in accordance with IFRS 5 Non-current Assets

Held for Sale and Discontinued Operations , the investment, or any retained interest

in the investment not classified as held for sale, shall be classified as a non-

current asset.

Application of the equity method

An entity with joint control of, or significant influence over, an investee shall

account for its investment in an associate or a joint venture using the equity

method except when that investment qualifies for exemption in accordance

with paragraphs 17–19.

Exemptions from applying the equity method

An entity need not apply the equity method to its investment in an associate

or a joint venture if the entity is a parent that is exempt from preparing

consolidated financial statements by the scope exception in paragraph 4(a) of

IFRS 10 or if all the following apply:

(a) The entity is a wholly-owned subsidiary , or is a partially-owned

subsidiary of another entity and its other owners, including those not

otherwise entitled to vote, have been informed about, and do not

object to, the entity not applying the equity method.

(b) The entity’s debt or equity instruments are not traded in a public

market (a domestic or foreign stock exchange or an over-the-counter

market, including local and regional markets).13

14

14A

15

16

17IAS 28

(c) The entity did not file, nor is it in the process of filing, its financial

statements with a securities commission or other regulatory

organisation, for the purpose of issuing any class of instruments in a

public market.

(d) The ultimate or any intermediate parent of the entity produces

financial statements available for public use that comply with IFRSs, in

which subsidiaries are consolidated or are measured at fair value

through profit or loss in accordance with IFRS 10.

When an investment in an associate or a joint venture is held by, or is held

indirectly through, an entity that is a venture capital organisation, or a

mutual fund, unit trust and similar entities including investment-linked

insurance funds, the entity may elect to measure that investment at fair value

through profit or loss in accordance with IFRS 9. An example of an

investment-linked insurance fund is a fund held by an entity as the

underlying items for a group of insurance contracts with direct participation

features. For the purposes of this election, insurance contracts include

investment contracts with discretionary participation features. An entity shall

make this election separately for each associate or joint venture, at initial

recognition of the associate or joint venture. (See IFRS 17 Insurance

Contracts for terms used in this paragraph that are defined in that Standard.)

When an entity has an investment in an associate , a portion of which is held

indirectly through a venture capital organisation, or a mutual fund, unit trust

and similar entities including investment-linked insurance funds, the entity

may elect to measure that portion of the investment in the associate at fair

value through profit or loss in accordance with IFRS 9 regardless of whether

the venture capital organisation, or the mutual fund, unit trust and similar

entities including investment-linked insurance funds, has significant

influence over that portion of the investment. If the entity makes that

election, the entity shall apply the equity method to any remaining portion of

its investment in an associate that is not held through a venture capital

organisation, or a mutual fund, unit trust and similar entities including

investment-linked insurance funds.

Classification as held for sale

An entity shall apply IFRS 5 to an investment, or a portion of an investment,

in an associate or a joint venture that meets the criteria to be classified as held

for sale. Any retained portion of an investment in an associate or a joint

venture that has not been classified as held for sale shall be accounted for

using the equity method until disposal of the portion that is classified as held

for sale takes place. After the disposal takes place, an entity shall account for

any retained interest in the associate or joint venture in accordance with