United States

Narrow-scope amendments to IFRS 9 and IAS 28


The International Accounting Standards Board (IASB) recently issued narrow–scope amendments to International Financial Reporting Standard (IFRS) 9, Financial Instruments, and to International Accounting Standard (IAS) 28, Investments in Associates and Joint Ventures, as follows:

  • If a specified condition is met, Prepayment Features with Negative Compensation (Amendments to IFRS 9) allows companies to measure particular prepayable financial assets with so-called negative compensation at amortized cost or at fair value through other comprehensive income – instead of at fair value through profit or loss
  • Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) clarifies that companies account for long-term interests in an associate or joint venture – to which the equity method is not applied – using IFRS 9

The IASB also published an example illustrating how to apply the requirements in IFRS 9 and IAS 28 to long-term interests in an associate or joint venture.

The amendments are effective for annual periods beginning on or after January 1, 2019.