IASB proposes amendments to IAS 27 to allow equity method


Narrow-scope amendments to IAS 27 proposed Monday by the International Accounting Standards Board (IASB) would allow entities to use the equity method to account for investments in subsidiaries, joint ventures, and associates in their separate (parent-only) financial statements.

The proposed changes are designed to reduce compliance costs while providing information that will aid in assessment of the investor’s net assets and profit or loss.

Public comment on the exposure draft, Equity Method in Separate Financial Statements, can be made through Feb. 3 at the IASB’s website.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.


News quiz: College debt, stolen identities, and retirement planning

See how much you know about these developments and others in the Journal of Accountancy news quiz.


Preventing and detecting fraud at not-for-profits

Organizations in all industries must deal with the potential for fraud to occur, and design controls to prevent and detect it. Environment, policies, and controls can help organizations steer clear of problems.


The dangers of dabbling

To meet evolving marketplace needs, CPAs often look to diversify their service offerings. Firms can mitigate the risk of experiencing competency-related professional liability claims by implementing these basic steps.