Feedback Statement - Amendments to the Fair Value Option (IAS 28)
Final Comment Letter (FCL) 23 April 2026
The UK Endorsement Board (UKEB) is responsible for endorsement and adoption of IFRS for use in the UK and therefore is the UK's National Standard Setter for IFRS. The UKEB also leads the UK's engagement with the IFRS Foundation on the development of new standards, amendments and interpretations.
The comment letter to which this feedback statement relates forms part of those influencing activities and is intended to contribute to the IFRS Foundation's due process.
The views expressed by the UKEB in its comment letter are separate from, and will not necessarily affect the conclusions in, any endorsement and adoption assessment on new or amended international accounting standards undertaken by the UKEB.
Purpose of this Feedback Statement
This Feedback Statement presents the views of UK stakeholders received during the UKEB's public consultation on the draft comment letter (DCL) relating to the IASB's Exposure Draft (ED) Amendments to the Fair Value Option for Investments in Associates and Joint Ventures.
This feedback statement presents the views of UK stakeholders received during the UKEB's outreach activities on the ED and explains how the UKEB's Final Comment Letter addressed those views.
The IASB's Exposure Draft
In February 2026 the IASB issued the ED IASB/ED/2026/1 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures proposing amendments to the scope the fair value option in IAS 28 Investments in Associates and Joint Ventures (IAS 28).
The IASB proposed amending paragraphs 18 and 19 of IAS 28 to broaden the scope of the fair value option to entities with a main business activity of investing in particular types of assets. The amendments were proposed to address an urgent issue identified by the IASB relating to first time adoption of IFRS 18 Presentation and Disclosure in Financial Statements.
UKEB public consultation on the DCL
Prior to publishing the DCL, and in advance of the publication of the ED we gathered stakeholder feedback through discussions with:
- UKEB Advisory and Working Groups:
- Investor Advisory Group
- Accounting Firms and Institutes Advisory Group
- Financial Instruments Working Group
- Stakeholder feedback was reflected in the DCL.
- The DCL was published for consultation for 30 days, between 4 March 2026 and 4 April 2026.
-
During the consultation period, the UKEB promoted awareness of the DCL and encouraged stakeholders to respond through News Alerts, LinkedIn posts, and the UKEB website.
-
Six formal responses from stakeholders were received. These were published on the UKEB website.
- We also gathered feedback from discussion with the following UKEB Advisory Groups:
- Accounting Firms and Institutes Advisory Group
- Preparer Advisory Group
-
All stakeholder comments and views were considered in finalising the UKEB's FCL.
-
Six formal responses from stakeholders were received.
- Stakeholder submissions received were published on the UKEB website.
- All stakeholder comments and views were considered in finalising the UKEB's Final Comment Letter (FCL).
| Stakeholder type | Number of formal responses |
|---|---|
| Accounting firms | 2 |
| Preparers | 2 |
| Trade association | 1 |
| Not-for-profit organisation | 1 |
| Total | 6 |
| Topic/Question | UKEB draft position | Further stakeholder views | Question 1: Proposed amendments to paragraph 18 and 19 of IAS 28 | UKEB final position | UKEB final position | UKEB final position | | :---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ## UKEB public consultation on the DCL {: #ukeb-public-consultation-on-the-dcl }
Prior to publishing the DCL, and in advance of the publication of the ED we gathered stakeholder feedback through discussions with:
* UKEB Advisory and Working Groups:
* Investor Advisory Group
* Accounting Firms and Institutes Advisory Group
* Financial Instruments Working Group
* Stakeholder feedback was reflected in the DCL.
* The DCL was published for consultation for 30 days, between 4 March 2026 and 4 April 2026.
* During the consultation period, the UKEB promoted awareness of the DCL and encouraged stakeholders to respond through News Alerts, LinkedIn posts, and the UKEB website.
* Six formal responses from stakeholders were received. These were published on the UKEB website.
* We also gathered feedback from discussion with the following UKEB Advisory Groups:
* Accounting Firms and Institutes Advisory Group
* Preparer Advisory Group
* All stakeholder comments and views were considered in finalising the UKEB's FCL.
* Six formal responses from stakeholders were received.
* Stakeholder submissions received were published on the UKEB website.
* All stakeholder comments and views were considered in finalising the UKEB's Final Comment Letter (FCL).
<div class="table-container" markdown="1">
| Stakeholder type | Number of formal responses |
| :-------------------------- | :------------------------- |
| Accounting firms | 2 |
| Preparers | 2 |
| Trade association | 1 |
| Not-for-profit organisation | 1 |
| Total | 6 |
| Topic/Question | UKEB draft position | Further stakeholder views | UKEB final position | UKEB final position | UK | UKEB final position |
| UKEB draft position | UKEB final position | | Question 1: Proposed amendments to paragraph 18 and 19 of IAS 28 | | | Question 1: Proposed amendments to paragraph 18 and 19 of IAS 28 | The UKEB considers that a more concise and principles-based articulation of the scope could be achieved by redrafting paragraph 18 to refer to “an entity that has a main business activity of investing in particular types of assets…” to replace the existing references to venture capital organization, mutual fund, unit trust, or similar entity. | Largely supportive of UKEB draft position. One respondent noted that the IASB’s proposed amendments broaden the availability of the fair value option such that the scope of the amendments could be seen as extending beyond clarifying the meaning of “similar entities including investment-linked insurance funds” (see paragraph BC10 of the ED). The respondent recommended that this should be explicitly acknowledged. One respondent expressed concern that, should existing references to venture capital organisations, mutual funds or unit trusts be deleted from IAS 28 per the UKEB’s suggested wording, there is a risk that an entity that currently takes the fair value option may be prevented from doing so. One respondent suggested including a non-exhaustive list of the types of entities that could have a main business activity of investing in assets. Two respondents noted that any changes proposed by the UKEB to the wording in paragraph 18 should also be reflected in paragraph 19 of IAS 28. One respondent disagreed with the UKEB’s draft position (see “other comments” section below). | Consistent with draft position. A footnote has been included in the appendix to the draft FCL to reflect the need for consequential amendments to paragraph 19 of IAS 28. | | Clarification of ability to revoke the fair value option | The UKEB expressed concern about the inclusion in the basis for conclusions of clarifying text relating to the ability to revoke the fair value option in IAS 28. The UKEB recommended that if necessary this be addressed through mandatory text or an IFRIC referral. | Two responses from preparers supported the UKEB DCL position. Both preparers noted that IAS 28 is silent on whether the option is irrevocable. Two comment letters, from a trade association and an accounting firm, did not agree with the DCL position. Both responses noted agreement with aspects of the concerns raised in the UKEB DCL. However, the trade association response noted that they understood the election to be irrevocable in accordance with IFRS 9, while the accounting firm referred to a generally accepted position that the election is irrevocable. The accounting firm recommend this is addressed in paragraph 18 of IAS 28 as part of this project, rather than as a separate project. One respondent disagreed with the UKEB’s draft position (see “other comments” section below). | Consistent with draft position. No substantive changes proposed to the draft FCL. | | Alternative views | The UKEB encouraged the IASB to consider equity accounting for associates more generally, and consider an unrestricted fair value option as part of that wider project. | Generally supportive of UKEB draft position. One respondent expressed concern that the classification of income and expenses from an associate or joint venture should not be determined by the measurement basis of that associate or joint venture, and that the proposed changes only partially address the issue in IFRS 18. | On the basis of general support for the DCL position, the DCL comment has been included in the covering letter of the draft FCL in addition to the appendix. The text has been updated to link this to the forthcoming fourth agenda consultation. This is a wider concern with IFRS 18, rather than specific to these proposed amendments. No changes proposed to the draft FCL. | | Question 2: Effective date and transition | The UKEB supported the ED proposals. | Largely supportive of UKEB draft position. One accounting firm disagreed with the UKEB position. They suggested a small drafting change to the transition requirements to address a possible issue for early adopters of IFRS 18. One other respondent disagreed with the UKEB’s draft position (see “other comments” section below). | Consistent with draft position, with the addition of drafting suggestion received in comment letter. | | Other comments | N/a | One respondent expressed disagreement with the UKEB’s DCL position in response to Questions 1, 2, and 4 in the Invitation To Comment. The respondent raised concerns relating to: * The UKEB’s role and responsibilities and how these interact with the work of others. * The need for public engagement with, and parliamentary oversight of, the work of the UKEB. * The independence of the UKEB. * The need for a major review of IFRS 18 before it is adopted for use in the UK. * The possibility that the proposed amendments will bring subjective performance measures into accounts. * The appropriateness of making amendments to accounting standards in response to specific industry concerns. * The nature of the “investors” considered by the UKEB as it determines whether to adopt IFRS Accounting Standards and Amendments for use in the UK. | The comment letter from this respondent did not specifically address the proposed changes in the ED. Having considered these comments, no changes are proposed to the DCL. |
Disclaimer
This Feedback Statement has been produced in order to set out the UKEB's response to stakeholder comments received on the UKEB's DCL on the IASB's ED Amendments to the Fair Value Option for Investments in Associates and Joint Ventures and should not be relied upon for any other purpose.
The views expressed in this Feedback Statement are those of the UK Endorsement Board at the point of publication.
Any sentiment or opinion expressed within this Feedback Statement will not necessarily bind the conclusions, decisions, endorsement or adoption of any new or amended IFRS by the UKEB.
Contact Us
UK Endorsement Board 1 Harbour Exchange | London | E14 9GE www.endorsement-board.uk