The European Financial Reporting Advisory Group has published a feedback statement on the exposure draft amending the fair value option for investments in associates and joint ventures, setting out how respondents’ comments informed its final comment letter. EFRAG confirmed its support for the proposed amendments, concluding that they address insurers’ concerns about divergent interpretations of the term similar entities in paragraphs 18 and 19 of IAS 28 Investments in Associates and Joint Ventures and the resulting effects on classification under IFRS 18 Presentation and Disclosure in Financial Statements. The feedback statement also records areas where interpretation issues remain. EFRAG noted differing views on the wording of the amendments, particularly on the interaction between IAS 28 and IFRS 18 and on how the fair value option assessment would apply at different entity levels, and it therefore called for further clarification in those areas. The positions reflected in the statement are those set out in EFRAG’s final comment letter published on 16 April 2026.
European Financial Reporting Advisory Group2026-06-02
European Financial Reporting Advisory Group supports fair value option amendments for associates and joint ventures and seeks clarification on IAS 28 and IFRS 18 interaction
The European Financial Reporting Advisory Group published a feedback statement on the exposure draft amending the fair value option for investments in associates and joint ventures, confirming support for the proposed amendments. EFRAG concluded that the changes address insurers’ concerns about divergent interpretations of similar entities in IAS 28 and related classification effects under IFRS 18, but highlighted remaining issues on the interaction between IAS 28 and IFRS 18 and on applying the fair value option at different entity levels, calling for further clarification.