In an opinion sent to the European Commission on Thursday 23 July, the European Financial Reporting Advisory Group (EFRAG) recommends that the Union adopt the amendments made to International Accounting Standard ‘IAS 28’ concerning the fair value option for investments in associates and joint ventures (‘Amendments to the Fair Value Option for Investments in Associates and Joint Ventures’).
EFRAG considers that these amendments meet the technical criteria laid down by the European regulation on international accounting standards and are conducive to the European public good. The advisory body therefore recommends their adoption without delay, so that they enter into force at the same time as ‘IFRS 18’, applicable from 1 January 2027 (see EUROPE 13811/30).
According to EFRAG, these amendments will make it possible to avoid divergent interpretations of ‘IAS 28’ liable to result in differences in the presentation of income and expenses under ‘IFRS 18’, thereby strengthening the comparability of financial statements.
See EFRAG’s letter to the Commission’s financial services: https://aeur.eu/f/n0o (Original version in French by Bernard Denuit)