IFRS EU endorsement process [June 2026]
The European Financial Reporting Advisory Group (EFRAG) updated its report showing the status of endorsement of each IFRS, including standards, interpretations, and amendments, most recently on 19 June 2026.
IASB issued amendments to IAS 28
On 26 June 2026, the International Accounting Standards Board (IASB) published ‘Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28)’.
Background
IAS 28 Investments in Associates and Joint Ventures currently permits an entity to elect at initial recognition of an investment in an associate or a joint venture to measure that investment at fair value through profit or loss in accordance with IFRS 9 Financial instruments if the investment is held by a venture capital organisation, or a mutual fund, unit trust and similar entities, including investment-linked insurance funds.
Following feedback from stakeholders, particularly in the insurance industry, about diversity in the application of this election and its effects on the classification of income and expenses in the statement of profit or loss under the new standard IFRS 18 Presentation and Disclosure in Financial Statements, the IASB decided to issue narrow-scope amendments to clarify which entities are considered ‘similar’ for these purposes.
The amendments
The IASB amends IAS 28 to clarify that an entity that has a main business activity of investing in particular types of assets (as set out in IFRS 18:49(a)) is a ‘similar entity’ eligible to apply the fair value option in IAS 28.
The IASB decided against extending the fair value option to all entities as the amendments above suffice to address the identified diversity in practice and more time would have been needed to gather information about any effects the more comprehensive change might have had on the overall application of IAS 28 and could not have been completed in time for the initial application of IFRS 18.
Note on the application of IFRS 18: The amendments do not necessarily mean that income and expenses from investments measured using the fair value option in IAS 28 will be classified in the operating category in the statement of profit or loss. The requirements of IFRS 18 will still need to be applied to determine whether classification in the operating or investing category is appropriate.
Effective date and transition
An entity is required to apply the amendments at the same time and on the same basis as it applies IFRS 18, which is effective for annual reporting periods beginning on or after 1 January 2027).
