Register now or log in to join your professional community.
In accordance with Deloitte reports:
IAS28 Investments in Associates and Joint Ventures (as amended in2011) outlines how to apply, with certain limited exceptions, the equity method to investments in associates and joint ventures. The standard also defines an associate by reference to the concept of "significant influence", which requires power to participate in financial and operating policy decisions of an investee (but not joint control or control of those polices).
IAS28 was reissued in May2011 and applies to annual periods beginning on or after1 January2013
.- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - -- - - - -
From:Amended by Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS10 and IAS28)
Effective on a prospective basis to transactions occurring in annual periods beginning on or after1 January2016
In some countries, local laws or regulations require separate
financial statements that apply equity accounting for
investments in associates, joint ventures and subsidiaries.
However, IFRS does not currently permit this. In some
cases, the use of the equity method is the only difference
between separate financial statements prepared under
IFRS and those under local regulations.
Under Equity method Currently IFRS does not allow but conditions applied in different countries.
at cost, and the carrying amount is increased or decreased to recognise the investor's share of the profit or loss of the investee after the date of acquisition.
I agree with answers provided
