This standard governs the accounting for investments in associates where the investment in the associate takes the form of shares or other equity instruments, but does not cover investments in associates held by venture capital organizations or investment funds, unit trusts or similar entities such as investment-linked insurance funds. Such investments are measured at fair value with changes in fair value recognized in surplus or deficit in the period in accordance with IPSAS 29, Financial Instruments: Recognition and Measurement.
IAS 28, Investments in Associates
An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant influence and that is neither a controlled entity nor an interest in a joint venture (cf. IPSAS 8).
Separate financial statements in accordance with IPSASs are financial statements presented by a controlling entity, an investor in an associate or a venturer in a jointly controlled entity, in which the investments are accounted for on the basis of the direct net assets/equity interest rather than on the basis of the reported results and net assets of the investees (cf. IPSAS 6.7). Financial statements of an entity that does not have a controlled entity (subsidiary), associate or venturer's interest in a joint venture are not separate financial statements in accordance with IPSASs.