The International Accounting Standards Board (IASB) has opened a consultation on specific proposed changes to IAS 28 Investments in associates and joint ventures.
The measure is intended 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 limited to cases that eliminate or significantly reduce accounting mismatches.
The consultation follows feedback from stakeholders who highlighted inconsistent practice in the application of this option.
These differences affect how income and expenses are classified in the income statement when companies apply IFRS 18 Presentation and Disclosure in Financial Statements.
The issue has become more pressing as a growing number of companies evaluate whether to choose the fair value option as they prepare for the implementation of IFRS 18.
In response, the board proposes limited modifications intended to support more consistent use of the requirements and give preparers clearer direction before IFRS 18 comes into effect.
To meet that timeline, the IASB has established a shorter-than-usual comment period.
Consultation is open until April 20, 2026, and the board plans to complete any changes by mid-2026 to give jurisdictions 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 Non-Responsible Subsidiaries: Disclosures after completing planned updates to the standard.
“IASB seeks views on clarification of fair value option in IAS 28” was created and originally published by International Accounting Bulletin, a brand owned by GlobalData.
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