Exposure Draft IASB/ED/2026/1 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Proposed amendments to IAS 28)

The International Accounting Standards Board (IASB) has published the Exposure Draft Amendments to the Fair Value Option for Investments in Associates and Joint Ventures, which amendments to IAS 28 Investments in Associates and Joint Ventures.

The Exposure Draft responds to stakeholder feedback regarding diversity in the application of the fair value option requirements in IAS 28 and the resulting effects on the classification of income and expenses in the statement of profit or loss under IFRS 18 Presentation and Disclosure in Financial Statements.

Specifically, the Exposure Draft proposes amendments to paragraphs 18–19 of IAS 28 to clarify that an entity whose main business activity is investing in particular types of assets (as described in paragraph 49(a) of IFRS 18) would be eligible to elect the fair value option in IAS 28.

The IASB expects the proposed amendments to provide timely clarification to affected entities and to reduce diversity in practice regarding eligibility to apply the fair value option under IAS 28.

Invitation to comment

The Exposure Draft is open for comment until 31 March 2026.

You may provide your comments via email to us at technical@masb.org.my. 

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