EFRAG publishes Feedback Statement on the IAS 28 Fair Value Option Exposure Draft
EFRAG has published its Feedback Statement on the Exposure Draft ED/2026/1 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (the ED). The statement explains how the feedback received was considered by EFRAG in reaching the positions reflected in its final comment letter, published on 16 April 2026.
Based on the feedback received, in its final comment letter, EFRAG confirmed its draft position supporting the ED’s proposals. That is, they address insurers’ concerns over divergent interpretations of the term ‘similar entities’ in paragraphs 18 and 19 of IAS 28 Investments in Associates and Joint Ventures, and the resulting impact on classification under IFRS 18 Presentation and Disclosure in Financial Statements.
At the same time, EFRAG acknowledged differing interpretations of the wording of the amendments, particularly in relation to the interaction between IAS 28 and IFRS 18, and how the fair value option assessment would apply at different entity levels. Therefore, EFRAG suggested further clarification in these areas.