Response 6 - ICAEW

ICAEW Representation 94/26
Issued 10 November 2026

ICAEW welcomes the opportunity to comment on the Draft Endorsement Criteria Assessment of Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28) published by UK Endorsement Board on 12 August 2026, a copy of which is available from this link.

ICAEW supports the UKEB’s DECA of Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28).

This response of 10 November 2026 has been prepared by the ICAEW Corporate Reporting Faculty. Recognised internationally as a leading authority on corporate reporting, the faculty, through its Financial Reporting Committee, is responsible for formulating ICAEW policy on financial and non-financial reporting issues and makes submissions to standard setters and other external bodies on behalf of ICAEW. The faculty provides an extensive range of services to its members including providing practical assistance with common corporate reporting problems.

ICAEW is a world-leading professional body established under a Royal Charter to serve the public interest. In pursuit of its vision of a world of strong economies, ICAEW works with governments, regulators and businesses and it leads, connects, supports and regulates more than 172,000 chartered accountant members in over 150 countries. ICAEW members work in all types of private and public organisations, including public practice firms, and are trained to provide clarity and rigour and apply the highest professional, technical and ethical standards.

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ICAEW
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Key Points

1ICAEW supports the UK endorsement of the IASB’s amendments to IAS 28.

2This response of 10 November 2026, included in the appendix below, has been prepared by ICAEW’s Corporate Reporting Faculty.

Appendix – Detailed Response

Invitation to Comment

Call for comments on Draft Endorsement Criteria Assessment of Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28)

Deadline for completion of this Invitation to Comment:
Close of business, Tuesday 10 November 2026

Please submit to:
[email protected]

Introduction

The objective of this Invitation to Comment is to obtain input from stakeholders on the endorsement and adoption of Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28) (Amendments), published by the International Accounting Standards Board (IASB) in June 2026. The Amendments clarify that similar entities include those that have a main business activity of investing in particular types of assets (as set out in paragraph 49(a) of IFRS 18 Presentation and Disclosure in Financial Statements) are eligible to elect the fair value option in IAS 28 Investments in Associates and Joint Ventures.

At the date of initial application of IFRS 18, an entity eligible to apply paragraph 18 of IAS 28 is permitted to change its election for measuring an investment in an associate or joint venture from the equity method to fair value through profit or loss in accordance with IFRS 9. If an entity makes such a change, the entity shall apply the change retrospectively applying IAS 8.

The information collected from this Invitation to Comment is intended to help with the endorsement assessment.

UK endorsement and adoption process

The requirements for UK adoption are set out in Statutory Instrument 2019/685¹.

The powers to formally adopt international accounting standards for use in the UK were delegated to the UK Endorsement Board in May 2021².

Who should respond to this Invitation to Comment?

Stakeholders with an interest in the quality of accounts prepared in accordance with IFRS Accounting Standards.

How to respond to this Invitation to Comment

Please download this document, answer any questions on which you would like to provide views, and return it to [email protected] by close of business on Tuesday 10 November 2026.

Brief responses to individual questions are welcome, as well as comprehensive responses to all questions.

Privacy and other policies

The data collected through submitting this document will be stored and processed by the UKEB. By submitting this document, you consent to the UKEB processing your data for the purposes of influencing the development of and adopting IFRS for use in the UK. For further information, please see our Privacy Statements and Notices and other Policies (e.g. Consultation Responses Policy and Data Protection Policy)³.

The UKEB’s policy is to publish on its website all responses to formal consultations issued by the UKEB unless the respondent explicitly requests otherwise. A standard confidentiality statement in an e-mail message will not be regarded as a request for non-disclosure. If you do not wish your signature to be published, please provide the UKEB with an unsigned version of your submission. The UKEB prefers to publish responses that do not include a personal signature. Other than the name of the organisation/individual responding, information contained in the “Your Details” document will not be published. The UKEB does not edit personal information (such as telephone numbers, postal or e-mail addresses) from any other response document submitted; therefore, only information that you wish to be published should be submitted in such responses.

Assessment against endorsement criteria

Our draft assessment [tentatively] concludes that:

• the Amendments meet the criteria of relevance, reliability, understandability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by SI 2019/685 (see Regulation 7(1)(c));
• application of the Amendments is not contrary to the principle that an entity’s accounts must give a true and fair view as required by SI 2019/685 (see Regulation 7(1)(a)); and
• that the Amendments are likely to be conducive to the long term public good in the UK as required by SI 2019/685 (see Regulation 7(1)(b)), having considered:
• whether they will generally improve the quality of financial reporting;
• the costs and benefits that are likely to result from their use; and
• whether they are likely to have an adverse effect on the economy of the UK, including on economic growth.

Our assessment of the Amendments is set out in Tables 1–4 of the [Draft] Endorsement Criteria Assessment ([Draft] ECA).

Questions

Technical accounting criteria assessment

1Do you agree with the draft assessment of the Amendments against the technical accounting criteria? Please select one option. Please explain why or why not.

True and fair view

2Do you agree with the draft assessment that the Amendments are not contrary to the true and fair view requirement? Please select one option. Please explain why or why not.

UK long term public good

3Do you agree with the initial overall assessment of costs and benefits likely to arise from the Amendments? Please select one option. Please explain why or why not.

4Do you agree with the draft assessment that the Amendments are likely to be conducive to the long term public good in the UK? Please select one option. Please explain why or why not.

Click or tap here to enter text.

5Do you have any other comments you would like to add?

None

Impact on UK entities

6Are you a preparer of financial statements that could be affected by the Amendments?

7Are you aware of any UK entities that could be affected by the Amendments? If you have answered ‘yes’, which sector do these entities operate in?

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8In your opinion, is there a risk that the Amendments could inadvertently narrow the scope of IAS 28’s fair value option among UK preparers? Please explain why or why not.

We are not aware of any circumstances where the Amendments could inadvertently narrow the scope of IAS 28’s fair value option among UK preparers.

Response generation

1Did you/your organisation use a large language model (e.g. Chat GPT, Microsoft Copilot) to create any part of your/its response (response to this Invitation to Comment or a comment letter you are submitting as part of your response)?

2If you answered yes to the question above, please specify which model and what prompt(s) you used for the large language model.

Thank you for completing this Invitation to Comment

Please submit this document by close of business on Tuesday 10 November 2026 to:
[email protected]