Accounting Regulatory Committee votes in favour of amendments to IAS 28

The Accounting Regulatory Committee ('ARC') voted by written procedure in favour of the Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28).

The Amendments address stakeholders' concerns regarding divergent interpretations of the term ‘similar entities’ in paragraphs 18 and 19 of IAS 28, and the subsequent impact on classification between operating and investing categories under IFRS 18 Presentation and Disclosure in Financial Statements.

Endorsement Status Report update

As a result, EFRAG has updated the EFRAG Endorsement Status Report, which can also be downloaded under the menu 'Endorsement Status'.

What’s next

The European Commission will submit the amendments to the European Parliament and the Council of the EU, for a 3-month scrutiny period.

The amendments take effect when an entity first applies IFRS 18, from 1 January 2027, with earlier application permitted.

Further information

Explore EFRAG’s technical work on the topic:

• Endorsement Advice
• Amendments to IAS 28