IAS 28 - Investments in Associates and Joint Ventures
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 28 requires the use of the equity method to account for investments in associates and joint ventures, reflecting the investors share of profit or loss and net assets.
Use cases, Example & Why it matters
Use cases
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Example
- Example: When preparing year-end reporting, management applies **IAS 28 - Investments in Associates and Joint Ventures** to determine the correct IFRS treatment and disclosures.
Why it matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.