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 (
) is a JofA senior editor.