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IAS 28 Amendments - Long-term Interests in Associates and Joint Ventures


​Exposure Draft

On 12 January 2017, the IASB issued the ED/2017/01 Annual Improvements to IFRS Standards 2015-2017 Cycle ('the ED'), with a comment period ending on 12 April 2017. The ED covered narrow-scope amendments to IAS 12 Income Taxes, to IAS 23 Borrowing Costs and IAS 28 Investments in Associates and Joint Ventures.

More details as well as EFRAG's draft comment letter and comment letter are available at the following project site:

The Amendments

On 12 October 2017, the IASB issued Amendments to IAS 28 - Long-term Interests in Associates and Joint Ventures ('the Amendments'). The Amendments clarify that an entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that, in substance, form part of the net investment in the associate or joint venture but to which the equity method is not applied. An entity applies IFRS 9 to such long-term interests before it applies IAS 28. 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 IAS 28.
An entity applies the Amendments retrospectively for annual reporting periods beginning on or after 1 January 2019. Earlier application is permitted.

The IASB has also published an example that illustrates how entities apply the requirements in IFRS 9 and IAS 28 to long-term interests in an associate or joint venture.

On 15 December 2017, EFRAG issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of the Amendments. Comments were requested by 16 February 2018.

On 24 April 2018, EFRAG submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assessed that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommended their endorsement.

The endorsement was published in the Official Journal of the European Union on 11 February 2019.

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