ACCA welcomes the opportunity to provide views in response to the IASB’s exposure draft (ED) for Amendments to the Fair Value Option for Investments in Associates and Joint Ventures. We hope that our comments, which include feedback from our Global Forum for Corporate Reporting, are a helpful contribution to this process.

We believe there are merits to clarifying which entities are eligible to measure investments in an associate or a joint venture using the fair value option in IAS 28, in particular to minimise potential discrepancies with some of the requirements in IFRS 18 when the standard becomes effective. However, the proposed amendments to paragraphs 18 and 19 of IAS 28 do not meet the objective of this project. We suggest the IASB redraft the requirements for scoping these entities to be simpler and principles-based. See our comments in question 1.

We understand and support the IASB’s rationale for issuing amendments to IAS 28 before IFRS 18 becomes effective.

Our detailed responses to the specific questions asked are set out on the document found on this page for download.