EFRAG has shared its final comment letter on the IASB’s Exposure Draft, Equity Method of Accounting for Investments in Associates and Joint Ventures.
The Exposure Draft, issued on 19 September 2024, aims to resolve IAS 28 application issues and enhance disclosure requirements in IFRS 12 and IAS 27.
EFRAG supports key proposals, including the measurement of the cost of an investee, investor-investee transactions, and improved disclosures. However, it recommends:
- Simplifying the layered approach for step acquisitions,
- Developing a principle-based solution for ownership changes,
- Exempting certain transactions from proposals for separate financial statements, and
- Clarifying transition requirements.
- EFRAG also calls for a fundamental review of the equity method in the IASB’s agenda.
To access the EFRAG Comment Letter [here]
For more information [here]