International GAAP 2020

Chapter 11Investments in associates and joint ventures

• 1 INTRODUCTION
• 2 OBJECTIVE AND SCOPE OF IAS 28
  • 2.1 Objective
  • 2.2 Scope
• 3 DEFINITIONS
• 4 SIGNIFICANT INFLUENCE
  • 4.1 Severe long-term restrictions impairing ability to transfer funds to the investor
  • 4.2 Lack of significant influence
  • 4.3 Holdings of less than 20% of the voting power
  • 4.4 Potential voting rights
  • 4.5 Voting rights held in a fiduciary capacity
  • 4.6 Fund managers
• 5 EXEMPTIONS FROM APPLYING THE EQUITY METHOD
  • 5.1 Parents exempt from preparing consolidated financial statements
  • 5.2 Subsidiaries meeting certain criteria
  • 5.3 Investments in associates or joint ventures held by venture capital organisations and similar organisations
    • 5.3.1 Investment entities exception
    • 5.3.2 Application of IFRS 9 to exempt investments in associates or joint ventures
    • 5.3.2.A Entities with a mix of activities
    • 5.3.2.B Designation of investments as ‘at fair value through profit or loss’
  • 5.4 Partial use of fair value measurement of associates
• 6 CLASSIFICATION AS HELD FOR SALE (IFRS 5)
• 7 APPLICATION OF THE EQUITY METHOD
  • 7.1 Overview
  • 7.2 Comparison between equity accounting and consolidation
  • 7.3 Date of commencement of equity accounting
  • 7.4 Initial carrying amount of an associate or joint venture
    • 7.4.1 Initial carrying amount of an associate or joint venture following loss of control of an entity
    • 7.4.2 Piecemeal acquisition of an associate or joint venture
      • 7.4.2.A Financial instrument becoming an associate or joint venture
        • I Applying ...