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24/04/2018 - EFRAG's endorsement advice on IAS 28 Amendments

​EFRAG has completed its due process regarding Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) and has submitted its Endorsement Advice Letter to the European Commission.


​In October 2017, the IASB issued Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) ('the Amendments'), which were initially included in the exposure draft ED/2017/1 Annual Improvements to IFRS Standards 2015-2017 Cycle issued in January 2017.  The Amendments, effective for annual periods beginning on or after 1 January 2019, clarify that an entity applies IFRS 9 Financial Instruments to financial instruments in an associate or joint venture to which the equity method is not applied. These include long-term interests that, in substance, form part of the entity's net investment in an associate or joint venture.

EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG's recommendation is explained in the letter to the European Commission and the accompanying appendices.

The Endorsement Advice Letter to the European Commission can be found here.

EFRAG has also updated its Endorsement Status Report, which can be downloaded here on EFRAG's web page.