IAS 28 exposure draft: clarifying eligibility for the fair value option
27 April 2026
In February 2026, the International Accounting Standards Board (IASB) published an exposure draft proposing narrow-scope amendments to IAS 28 – Investments in Associates and Joint Ventures. It aims to clarify which entities are eligible to use the fair value option for these investments
These proposals follow the discussions at the IASB’s December 2025 meeting, which culminated in the decision to clarify the concept of “similar entities”.
The exposure draft proposes clarifying that “similar entities” include those that have a main business activity of investing in assets, as defined in paragraph 49(a) of IFRS 18. While this is not strictly an extension of the fair value option, in practice the proposed clarification is likely to increase the number of entities that can apply the option.
The IASB has deliberately set a shorter comment period of 60 days, ending on 20 April 2026, so that the amendments can come into effect at the same time as IFRS 18.
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