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.
Detailed Explanation
IAS 28 requires the equity method for investments in associates and joint ventures, recognizing the investor’s share of profit or loss and other comprehensive income.
Common Uses
- 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.
Practical 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 This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.