IASB proposes to postpone accounting changes for associates and joint ventures until completion of broader review

 10 August 2015

The International Accounting Standards Board (IASB) today published for public consultation a proposal to postpone the date when entities must change some aspects of how they account for transactions between investors and associates or joint ventures.

The proposed postponement would apply to changes introduced by the IASB in 2014 through narrow-scope amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures.  Those changes affect how an entity should determine any gain or loss it recognises when assets are sold or contributed between the entity and an associate or joint venture in which it invests.  The changes do not affect other aspects of how entities account for their investments in associates and joint ventures.

The proposed postponement would remove the current requirement to make these particular changes by 2016.  Instead, entities could wait until after the IASB has carried out a planned broader review that may result in the simplification of accounting for such transactions and of other aspects of accounting for associates and joint ventures.

The consultation is open for comment until 9 October 2015.


END


Press enquiries:

Kirstina Reitan, Head of Communications, IFRS Foundation
Telephone: +44 (0)20 7246 6960
Email: kreitan@ifrs.org