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{{this}} requires an investor to account for its investment in associates using the equity method. [[Link::t:IFRS11]] requires an investor to account for its investments in joint ventures using the equity method (with some limited exceptions). {{this}} prescribes how to apply the equity method when accounting for investments in associates and [[Link::t:JV|joint ventures]].

An associate is an entity over which the investor has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee without the power to control or jointly control those policies.

If an entity holds, directly or indirectly (eg through subsidiaries), 20 per cent or more of the voting power of the investee, it is presumed that the entity has significant influence. A [[Link::t:JV|joint venture]] is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

Under the equity method, on initial recognition the investment in an associate or a joint venture is recognised at cost. The carrying amount is then increased or decreased to recognize the investor’s share of the subsequent profit or loss of the investee and to include that share of the investee’s profit or loss in the investor’s profit or loss. Distributions received from an investee reduce the carrying amount of the investment. Adjustments to the carrying amount may also be necessary for changes in the investor’s proportionate interest in the investee and for the investee’s other comprehensive income.

{{this}} is Copyright: [https://IFRS.org IFRS Foundation]
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[[Category:Term]][[Category:Finance]]
{{Object
|name=IAS 28 Investments in Associates & Joint Ventures
|parent=t:IFRS
|sort=10028
|level=1
|keywords=IAS, IFRS, Standard, Financial, Accounting, Investments, JV, Joint Venture, IAS 28, IFRS 11
|description=IAS 28 requires an investor to account for its investment in associates using the equity method
}}

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