The IASB has published a consultation in the form of an exposure draft proposing targeted amendments to clarify which investments a company is eligible to measure using the fair value option in IAS 28 Investments in Associates and Joint Ventures.

The consultation was open until 20 April 2026 and the IASB plans to finalise any amendments by mid-2026, allowing jurisdictions to bring the amendments into national legislation.

EFRAG has published its Draft Comment Letter ('DCL') on the IASB's Exposure Draft (ED’) Amendments to the Fair Value Option for Investments in Associates and Joint Ventures - Proposed amendments to IAS 28. Stakeholders were invited to comment on EFRAG’s DCL by 7 April 2026. EFRAG supported the IASB’s proposed amendments as they would address insurers’ concerns over divergent interpretations of ‘similar entities’ in paragraphs 18 and 19 of IAS 28 Investments in Associates and Joint Ventures, and the subsequent impact on classification between operating and investing categories under IFRS 18 Presentation and Disclosure in Financial Statements.

EFRAG published its Final Comment Letter on 16 April 2026 and confirmed its draft position of supporting the proposed amendments. At the same time, EFRAG acknowledged that stakeholders hold differing views on the appropriate scope of the proposed amendments, as well as on the interpretation of their wording. Therefore, EFRAG suggested areas for the IASB to further clarify to ensure consistent understanding and application of the amendments.

On 2 June 2026, EFRAG published its Feedback Statement, which summarises the main comments received by EFRAG on its DCL and explains how those comments were considered by EFRAG in reaching the positions reflected in its Final Comment Letter.

Considering the tight timeline of the due process, EFRAG exceptionally prepared and published on 16 June 2026, before the publication of the final amendments, its preparatory draft for its Endorsement Advice letter on Amendments to the fair value option for investments in associates and joint ventures in IAS 28. This unusual step is being taken to help secure endorsement of the Amendments before the effective date of IFRS 18 (1 January 2027), thereby enabling the Amendments to be applied at the same time as IFRS 18.

EFRAG's preliminary conclusion was that the Amendments would meet the technical criteria for endorsement and that the Amendments would be conducive to the European public good.

The preparatory draft of the Endorsement Advice is subject to public consultation until 17 July 2026.

Download the invitation to comment in Word or PDF and submit your feedback via this link.