The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend International Accounting Standard (IAS) 27 Separate Financial Statements relating to the use of the equity method.
The objective of the project is to allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The proposed guidance is expected to reduce compliance costs for many entities, while providing information helpful to an assessment of the investor’s net assets and profit or loss.
The AcSB is participating in the activities of the project to ensure that Canadian entities’ financial reporting needs are considered by the IASB. The amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting International Financial Reporting Standards (IFRSs) for publicly accountable enterprises.