22 November 2012
The International Accounting Standards Board (IASB) today published
for public comment an Exposure Draft of proposed amendments to IAS 28
Investments in Associates and Joint Ventures.
The
objective of the proposed amendments is to provide additional guidance to IAS 28
on the application of the equity method, a method of accounting whereby the
investment is initially recognised at cost and subsequently adjusted to reflect
the change in the investor's share of the investee's net assets. Specifically,
it aims to provide guidance on how investors should recognise their share of the
changes in the net assets of an investee that are not recognised in profit or
loss or other comprehensive income of the investee, and that are not
distributions received ('other net asset changes').
The issue originated
from a submission to the IFRS Interpretations Committee. As a result, the
Interpretations Committee recommended that the IASB amend IAS 28. The IASB
proposes that investors should recognise in the investors’ equity their share of
the investee's other net asset changes.
The Exposure Draft can be
accessed via the 'Comment
on a proposal' page. The IASB requests comments to these proposals
by 22 March 2013.
End