Equity Method

The IASB met on 25 March 2026 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

Other changes in ownership interest (Agenda Paper 13A)

The IASB tentatively decided to retain the proposal to require an investor that retains significant influence over an associate when its ownership interest changes:

1. to apply paragraphs 30–31 of the Exposure Draft to an increase in its ownership interest, as if the investor had purchased an additional ownership interest; and
2. to apply paragraphs 32–33 of the Exposure Draft to a decrease in its ownership interest, as if the investor had disposed of an ownership interest.

Eleven of 13 IASB members agreed with this decision.

The IASB tentatively decided:

1. not to provide illustrative examples of some fact patterns to clarify how an investor would apply paragraphs 30–33 of the Exposure Draft.
   Eight of 13 IASB members agreed with this decision.
   
   
2. not to introduce a requirement for an investor to recognise its share of the expense and the corresponding adjustment to the carrying amount of the investment during the vesting period of an equity-settled share-based payment transaction.
   Twelve of 13 IASB members agreed with this decision.
   
   
3. not to provide an exemption from applying paragraphs 30–33 of the Exposure Draft for transactions to which an investor is not a party, including those that occur outside an immediate associate.
   All 13 IASB members agreed with this decision.
   
   
4. not to introduce requirements for hybrid instruments (for example, hybrid instruments that affect dividend distribution but not voting rights).
   All 13 IASB members agreed with this decision.
   
   
5. not to introduce requirements for when an investor could combine transactions.
   All 13 IASB members agreed with this decision.

Purchase of an additional ownership interest—Relief (Agenda Paper 13B)

The IASB tentatively decided:

1. to provide relief from the proposal to require an investor to measure at fair value the additional share of the associate’s identifiable assets and liabilities. The relief would permit the investor to use an alternative measure when purchasing an additional ownership interest and retaining significant influence.
2. to permit an investor to apply the relief if the investor reasonably expects that the effects of using that alternative measure would not result in a material difference in its financial statements in the current or future periods (eligibility criterion).
3. to list the factors an investor considers in assessing the eligibility criterion.
4. not to specify alternative measures to fair value that an investor is permitted to use when using the relief.
5. to permit optional use of the relief.

All 13 IASB members agreed with this decision.