Changes to reporting transactions between investors and associates and joint ventures under IFRS 10 are under review as the International Accounting Standards Board (IASB) has postponed the date when entities must adopt this reporting change, pending completion of a broader review
The postponement applies to changes introduced by the IASB in 2014 through narrow-scope amendments to IFRS 10, Consolidated Financial Statements, and IAS 28, Investments in Associates and Joint Ventures.
Those changes affect how an entity should determine any gain or loss it recognises when assets are sold or contributed between the entity and an associate or joint venture in which it invests. The changes do not affect other aspects of how entities account for their investments in associates and joint ventures.
The latest announcement removes the current requirement to make these particular changes by 2016. It follows a consultation held in August which found the majority of respondents agreed to a proposed deferral, on the grounds this would mean entities need not change how they apply IAS 28 twice in a short period.
IASB says the reason for making the decision to postpone the effective date is that it is planning a broader review that may result in the simplification of accounting for such transactions and of other aspects of accounting for associates and joint ventures.
Details of the postponement are here
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