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IFRS® Accounting Standards

​​AcSB Exposure Draft – Equity Method of Accounting – IAS 28 Investments in Associates and Joint Ventures (revised 202x)​

Highlights

The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to incorporate amendments to IAS 28 Investments in Associates and Joint Ventures in Part I of the CPA Canada Handbook – Accounting.

This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.

Comments are requested from individuals and organizations in Canada who agree with the Exposure Draft proposals as well as from those who do not. Comments are most helpful if they relate to a specific paragraph or group of paragraphs. Any comments that express disagreement with the proposals should clearly explain the problem and include a suggested alternative, supported by specific reasoning.

Comments received on the AcSB Exposure Draft will be available on the website shortly after the comment deadline unless confidentiality is requested. The request for confidentiality must be stated explicitly within the response. 

IASB® Exposure Draft

The IASB recently issued the Exposure Draft, “Equity Method of Accounting – IAS 28 Investments in Associates and Joint Ventures (revised 202x),” which is available on the IASB website at www.ifrs.org.

The IASB’s Exposure Draft proposes amendments aimed at reducing diversity in practice by answering application questions about the equity method of accounting. The Exposure Draft also aims to enhance the information companies provide about equity accounted investments by proposing new disclosure requirements. Additionally, the IASB is proposing to reorder the paragraphs in IAS 28 to improve its understandability.

The proposed amendments would affect any entity applying the equity method of accounting in their consolidated financial statements, with investments in associates and joint ventures. They would also apply to entities that use the equity method in their separate financial statements for investments in subsidiaries, joint ventures, or associates.

The IASB’s Exposure Draft includes a Basis for Conclusions, which may provide information to interested and affected parties. 

Comments Requested

The AcSB encourages interested and affected parties in Canada to respond to the IASB on its Exposure Draft. Specific questions on which the IASB would like input are provided in the Invitation to Comment in its Exposure Draft. The AcSB requests that comment letters be sent directly to the IASB with a copy to the AcSB.

The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendment:

The IASB has developed the proposed amendments in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Send responses to this additional question directly to the AcSB

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

When to Reply

We value your input and look forward to your feedback. Comments to the IASB are due by January 20, 2025. Responses to the AcSB on the additional question set out above are due on January 10, 2025.

If you’d like the AcSB to consider your feedback prior to finalizing its comment letter to the IASB, please send your comments to the AcSB by January 8, 2025. Following the deadline, your feedback to the AcSB is considered as part of our IFRS Accounting Standards endorsement process. We also share Canadian feedback with the IASB through our involvement in international activities.

How to reply

Respond to the Canadian-specific question in this AcSB Exposure Draft, “Equity Method of Accounting – IAS 28 Investments in Associates and Joint Ventures (revised 202x),” by submitting a comment letter (in a Word file).

Please address your response to: 

Katharine Christopoulos, CPA, CA
Director, Accounting Standards
Accounting Standards Board
277 Wellington Street West
Toronto, Ontario M5V 3H2
[email protected]

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