The International Accounting Standards Board (IASB) has published for comment ED/2012/3 Equity Method: Share of Other Net Asset Changes, an exposure draft of proposed amendments to IAS 28 Investments in Associates and Joint Ventures.
The objective of the proposed amendments is to provide additional guidance in IAS 28 on the application of the equity method. Specifically, it aims to provide guidance on how investors should recognise their share of the changes in the net assets of an investee that are not recognised in profit or loss or other comprehensive income of the investee, and that are not distributions received (‘other net asset changes’).
The ED proposes that investors should recognise in the investors’ equity their share of the investee’s other net asset changes.
Comments can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chairman, New Zealand Accounting Standards Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to firstname.lastname@example.org. Comments can also be made electronically to the IASB website (www.ifrs.org), using the “Comment on a proposal” page.
Comments are due to the NZASB by 1 March 2013 and to the IASB by 22 March 2013. Constituents who submit comments directly to the IASB are requested to forward a copy to the NZASB.