The International Accounting Standards Board (IASB) has opened a consultation on proposed, targeted changes to IAS 28 Investments in associates and joint ventures.
The move aims to clarify which investments are eligible to be measured using the fair value option.
Under IASB requirements, the fair value option allows an entity to irrevocably designate certain financial assets or liabilities at fair value through profit or loss on initial recognition. The choice is restricted to cases that eliminate or significantly reduce accounting mismatches.
The consultation follows stakeholder feedback that highlighted inconsistent practice in applying this option.
Those differences affect how income and expenses are classified in the statement of profit or loss when companies apply IFRS 18 Presentation and Disclosure in Financial Statements.
The topic has become more pressing as a growing number of companies weigh up whether to elect the fair value option while preparing for IFRS 18 implementation.
In response, the board is proposing narrow amendments intended to support more consistent use of the requirements and to give preparers clearer direction before IFRS 18 becomes effective.
To meet that timeline, the IASB has set a shorter comment period than usual.
The consultation is open until 20 April 2026, and the board plans to complete any changes by mid‑2026 so that jurisdictions have time to incorporate the amendments into national legislation.
IASB members develop and approve IFRS Accounting Standards.
In August last year, the IASB issued amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures after completing its planned updates to the standard.
“IASB seeks views on clarifying fair value option in IAS 28” was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
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