Tentative decisions

Equity Method (IAS 28) — The IASB tentatively decided to require investors and joint venturers to measure the cost of an associate or joint venture at fair value upon obtaining significant influence or joint control, including any previously held interest, with contingent consideration measured at fair value and recognized in profit or loss unless classified as an equity instrument.

Equity Method – Additional Ownership Interests — The IASB tentatively decided to require measurement of additional ownership interests at fair value and to include in the carrying amount the investor's additional share of identifiable assets and liabilities at fair value, while exploring relief provisions for the latter requirement.

Equity Method – Disposal of Partial Investments — The IASB tentatively decided to require investors disposing of a portion of an investment to measure the disposed portion as a percentage of the investment's carrying amount and to recognize the difference between consideration received and the portion derecognized as a gain or loss in profit or loss.

Work Plan Capacity — The IASB tentatively decided to select a project from a defined list (operating segments, pollutant pricing mechanisms, hyperinflationary accounting, or cryptoassets) to add to its work plan as capacity becomes available.

Active projects

Equity Method of Accounting — The IASB is redeliberating an Exposure Draft on IAS 28; tentative decisions have been reached on measurement of costs, contingent consideration, additional ownership interests, and disposals; redeliberations will continue.

Intangible Assets — The IASB received a status update on initial research streams; no decisions were required; findings will be discussed in Q1 2026.

Work Plan Capacity Management — The IASB has created a formal process to assign future capacity to one of four candidate projects (operating segments, pollutant pricing mechanisms, hyperinflationary accounting, cryptoassets); the selection decision will follow.

What it means for preparers

• IAS 28 Compliance Risk: Organizations holding investments in associates and joint ventures should prepare for significant changes to fair value measurement and recognition requirements, particularly regarding contingent consideration, additional ownership interest purchases, and partial disposals; these will alter carrying amounts, earnings volatility, and disclosure obligations once finalized.

• Contingent Consideration Complexity: Finance teams must understand that contingent consideration will be measured at fair value at each reporting date (unless classified as equity), with changes flowing through profit or loss; this increases earnings volatility and requires robust fair value estimation processes and controls.

• Watch for Relief Provisions: The Board is exploring relief from fair value measurement of identifiable assets and liabilities on additional ownership interest purchases; preparers should monitor the final outcome, as it could materially reduce implementation complexity and cost.

Standards in scope

• IAS 28 – Investments in Associates and Joint Ventures
• IFRS 3 – Business Combinations (definition of contingent consideration)
• IFRS 9 – Financial Instruments (contingent consideration classification)
• IAS 36 – Impairment of Assets (potential interaction with fair value measurement)

FOLLOW_UPS

["When will the final Equity Method standard be issued, and what is the effective date for IAS 28 amendments?", "Will preparers receive transition relief (e.g., cumulative catch-up or prospective application) for the fair value remeasurement requirements on obtaining significant influence?", "What specific relief provisions are being explored for measuring identifiable assets and liabilities on additional ownership interest purchases, and how will they affect comparability?", "Which of the four capacity projects (operating segments, pollutant pricing, hyperinflationary accounting, cryptoassets) is the IASB most likely to prioritize, and when will that decision be made?"]