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Description :
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On 12 May 2011, the IASB issued a revised version of IAS 28 Investments in Associates and Joint Ventures. The main purpose of this revision was to include consequential amendments of issuing a new standard IFRS 11 Joint Arrangements replacing IAS 31 Interests in Joint Ventures. IFRS 11 requires joint venturers to measure their interest in joint ventures in accordance with equity method. IAS 28 (as amended 2011) provides guidance on accounting for interests in associates and joint ventures in accordance with equity method.
Other amendments made to IAS 28 include:
• Incorporation of SIC-13 Jointly Controlled Entities – Non-Monetary Contributions by Venturers and extending the guidance to associates;
• Eliminating of requirement to remeasure the interests held when loosing joint control and remaining significant influence;
• Re-characterisation of the equity method scope exception for venture capital organisations and similar entities to become a measurement exception;
• Extension of an option to use fair value measurement to a portion of interests in associate held indirectly through a venture capital organisation or a similar entity;
• Specific guidance on application of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to a portion of investments in associates or joint ventures;
• Clarification and additional guidance on potential voting rights when determining significant influence.
On 9 February 2012, EFRAG issued the Invitation to Comment on its Initial Assessments of: IFRS 10, IFRS 11, IFRS 12, IAS 27 (2011) and IAS 28 (2011). Comments are requested by 11 March 2012. For further information and to access EFRAG's draft endorsement advice on IAs 28(2011), please click here.
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