.png?sfvrsn=dd675fd5_2)
.png?sfvrsn=7844d69f_0)
6a6c7fe2013f4be3b0ecc0a5930da5c9.jpg?sfvrsn=ab5334c8_0)
/business-management-global-connection/istock-1167579720-c.jpg?sfvrsn=ff93f9a5_2)
/audit-assurance/istock-1169206203-c.jpg?sfvrsn=1d6f9b25_6)
/ethics-and-professionalism/istock-1141115724-c.jpg?sfvrsn=4e54d691_2)
/audit-assurance/istock-818732836-c-v3.jpg?sfvrsn=ae44e7b7_0)
.png?sfvrsn=905ee1bd_0)
/legal-secretarial/istock-866706340-c.jpg?sfvrsn=d7f57b8c_2)
The ED aims to reduce diversity in practice by clarifying the scope of the fair value option in IAS 28 for accounting of investments in associates and joint ventures, and to improve consistency of presentation under IFRS 18. The proposed narrow‑scope
amendments clarify the meaning of “similar entities” and remove the investment‑linked insurance fund example, with the effect of making the fair value option available to more entities which have a main business activity of investing in
particular types of assets. The proposed amendments are effective for annual periods beginning on or after 1 January 2027.
We are supportive of the ED's proposals. However, we note that additional clarifications could be provided to enhance consistency in application and improve comparability, particularly in applying the concept of “main business activity” and
in clarifying the scope of the fair value option, including its applicability to REITs and whether a wider application should be considered.
Read our comment letter here.