Equity method part 2

It provisionally decided that:  

• acquisition costs incurred by an investor or joint venturer should be recognised as an expense in profit or loss in the period in which they are incurred, if they relate to:  
  • obtaining significant influence or joint control; or  
  • acquiring an additional ownership interest in an associate or joint venture;  
• these rules would be applied prospectively from the transition date. 

As regards the proposal to recognise in full gains or losses resulting from all transactions with associates and joint ventures, the IASB decided to carry out further work in order to understand the concerns expressed by respondents and to investigate whether they could be resolved by improving disclosures in the notes or adding guidance.