The International Accounting Standards Board (IASB) has completed its technical discussions on its Equity Method project and started the balloting process for a revised IAS 28 Investments in Associates and Joint Ventures. The revised Standard is expected to be issued in the first half of 2027 and is expected to apply to annual reporting periods beginning on or after 1 January 2029, with early application permitted. The IFRS Foundation’s September 2026 update confirms that the project is not yet a final accounting requirement.

For South African groups, this is a monitoring and readiness issue rather than an immediate change to current-year financial statements. However, entities that account for associates, joint ventures or certain subsidiaries using the equity method should start identifying where the proposed requirements could affect accounting policies, transaction records and disclosures.

What the IASB is changing

The project is intended to resolve recurring application questions and reduce differences in practice. The IASB’s project page identifies areas including the initial measurement of an investment, changes in ownership interests while significant influence or joint control is retained, and transactions with associates and joint ventures. The revised requirements are also expected to improve disclosures and reorganise the guidance around recognition, measurement, presentation and disclosure. The Equity Method project page records the latest technical decisions.

The IASB has also decided to proceed without re-exposure of the revised Standard. That means the next major milestone is completion of the balloting process, followed by publication of the final requirements. Until the Standard is issued and any South African adoption or endorsement implications are understood, businesses should not treat the proposed requirements as enacted accounting rules.

Who should pay attention

The development is most relevant to groups that hold investments in associates or joint ventures, including entities with complex ownership arrangements or significant related-party transactions. It may also matter to eligible subsidiaries applying IFRS 19 where separate financial statements include investments accounted for using the equity method.

Finance teams should be particularly alert where an entity buys or sells an interest without losing significant influence, records upstream or downstream transactions, or relies on exemptions and judgement in determining how gains and losses are recognised. These areas may require better supporting schedules and clearer policy documentation when the revised requirements become effective.

What businesses should check now

  • Prepare a complete register of associates, joint ventures and other investments accounted for using the equity method.
  • Document ownership percentages, voting rights, significant-influence assessments and changes during the reporting period.
  • Review agreements and transaction logs for transfers of assets, services, loans or other dealings with investees.
  • Identify where current spreadsheets or consolidation files do not retain sufficient detail to support future disclosures.
  • Ask the group reporting team or external adviser to assess the potential effect of the revised IAS 28 once the final Standard is published.

Practical next steps

Businesses do not need to redesign their reporting systems immediately, but they should build the project into their technical-accounting watchlist and future budgeting process. A short impact assessment during the next reporting cycle can establish which investments, contracts and disclosures will need deeper review.

For assistance with financial reporting reviews, accounting policies or group reporting controls, businesses can explore Your Financial Partner’s accounting and advisory services.