ED 333 Equity Method of Accounting issued for comment

Wednesday, October 2, 2024

The International Accounting Standards Board (IASB) has proposed amendments aimed at helping entities account for their investments in associates and joint ventures. The proposals respond to stakeholders’ questions on how to apply the equity method. To support IFRS compliance, the AASB issued ED 333 Equity Method of Accounting.

The proposed amendments would add to and clarify how to apply the equity method of accounting under AASB 128 Investments in Associates and Joint Ventures. The ED also proposes new disclosure requirements that would enhance the information entities provide about these investments. The proposed amendments are expected to reduce diversity in practice and provide users of financial statements with more comparable and useful information.