IAS 28 Investments in Associates and Joint Ventures
IAS 28 Investments in Associates and Joint Ventures prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.
Published May 2011. Effective 1 January 2013 (1 January 2014 for EU preparers).
Free to view
Financial Reporting Faculty members only
IAS 28 prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.
An associate is an entity over which the investor has significant influence. A shareholding of 20% or more of an entity is presumed to result in significant influence, although where a shareholding is less than this, significant influence can be established by other means.
In the consolidated financial statements, equity accounting is applied to investments in associates and joint ventures:
- In the consolidated statement of financial position the investment is initially carried at cost and subsequently adjusted for the investor’s share of profits or losses and other comprehensive income made by the investee. Distributions received from the investee reduce the carrying value of the investment.
- The investor’s share of the investee’s profit or loss and other comprehensive income are reported in the consolidated statement of profit or loss and other comprehensive income.
IAS 28 does not include any disclosure requirements; these are included in IFRS 12 Disclosure of Interests in Other Entities.
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.
This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.
Which version of the standard?
'Which version of the standard?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.
Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.
The following interpretation refers to IAS 28
Provides guidance on how a contributor to a decommissioning fund should account for its interest in a fund.
The Board moved a project on Equity Accounting from its research pipeline to its research programme in October 2020. The project will address application problems identified by the Interpretations Committee relating to the interaction between equity accounting as required by IAS 28 and other methods of accounting for investments in other entities.
This page was last updated 4 February 2022.
How standards trackers work
Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via eIFRS.
ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.