Global Standards for the world economy

Sunday 16 December 2018

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IAS 28 Investments in Associates and Joint Ventures—Long-term interests in associates and joint ventures


 Proposed Changes—Narrow-scope amendments to IFRS Standards

IAS 28 Investments in Associates and Joint Ventures—Long-term interests in associates and joint ventures

The Interpretations Committee received a request related to the interaction between IFRS 9 Financial Instruments and IAS 28 Investments in Associates and Joint Ventures.

The issue relates to whether the measurement, in particular relating to impairment, of long term interests in associates and joint ventures that, in substance, form part of the ‘net investment’ in the associate or joint venture should be governed by IFRS 9, IAS 28 or a combination of both.

Specifically, the Interpretations Committee considered a long-term interest in the form of an interest-bearing loan that would meet the criteria for classification as amortised cost in accordance with IFRS 9.

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