EFRAG submits Endorsement Advice on Amendments to IAS 28 to the European Commission
EFRAG has submitted its Endorsement Advice on the proposed EU adoption of Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28), issued by the IASB on 26 June 2026.
The Amendments address stakeholders' concerns regarding 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.
The amendments take effect when an entity first applies IFRS 18, from 1 January 2027, with earlier application permitted.
In its endorsement advice, EFRAG concludes that the Amendments meet the technical criteria set out in the IAS Regulation and are conducive to the European public good. EFRAG, therefore, recommends its endorsement. As a result, EFRAG has also updated its Endorsement Status Report regarding the Amendments.