Amendments to the Fair Value Option (IAS 28)
Project Type:
Endorsement
Status:
Active
Milestone:
Consultation
Effective Date: 1 January 2027
On 26 June 2026, the International Accounting Standards Board (IASB) issued Amendments to the Fair Value Option for Investments in Associates and Joint Ventures, which amended IAS 28 Investments in Associates and Joint Ventures.
The Amendments shall be applied at the same time an entity applies IFRS 18 Presentation and Disclosure in Financial Statements, which has an effective date of 1 January 2027 and subject to the UKEB endorsement and adoption in the UK. If an entity has elected to apply IFRS 18 prior to its effective date and that earlier period begins before the issuance of the Amendments, the entity shall apply the Amendments from the beginning of the reporting period starting on or after the issuance of the Amendments.
Background
The Amendments are a response to concerns raised by some stakeholders with the IASB about diversity in practice in the interpretation of the scope of paragraphs 18–19 of IAS 28. This diversity may cause a presentational issue for some preparers applying IFRS 18 for the first time.
The Amendments make the following changes to IAS 28 to clarify the scope of entity that may measure investments in an associate or joint venture using the fair value option:
- Remove the wording ‘entities including investment-linked insurance funds’ in paragraphs 18 and 19.
- Amend paragraph 18 to clarify that ‘similar entities include entities that have a main business activity of investing in particular types of assets’ and add a cross reference to paragraph 49(a) of IFRS 18.
- Delete the example of an investment-linked insurance fund that is currently included in paragraph 18.
In October 2025, the International Accounting Standards Board (IASB) added this urgent project to its workplan. Given the urgency of the project, the Exposure Draft (ED) Amendments to the Fair Value Option for Investments in Associates and Joint Ventures was published on 19 February 2026, with a 60-day comment period. The Project Initiation Plan (PIP) addresses both the influencing and the endorsement and adoption stages of the project.
The UKEB responded to the IASB’s consultation on the amendments, submitting its final comment letter on 23 April 2026. The UKEB Feedback Statement (published on 23 April 2026) summarises the outreach activities undertaken, stakeholder views, and the UKEB’s final position on the ED proposals.
Refer to this project webpage for details of the UKEB’s influencing project on the ED.
Outreach
The UKEB outreach plan includes discussions with stakeholders and public consultation on the UKEB’s Draft Endorsement Assessment Criteria ([Draft] ECA).
Draft Endorsement Criteria Assessment
On 12 August 2026, the UKEB published its draft Endorsement Criteria Assessment of Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28). The public consultation period closes on 10 November 2026.
The relevant documents are available at the end of this page:
- Draft Endorsement Criteria Assessment.
- Invitation to Comment (including Your Details) form.
- Responses from stakeholders.
UKEB Meetings
UKEB Meetings
- 16 July 2026: [Draft] Endorsement Criteria Assessment
- 29 January 2026: Project Initiation Plan
Timeline
-
2
Consultation
Hide all milestone documentation
The UKEB published its Draft Endorsement Criteria Assessment on 12 August 2026 for public consultation.
DECA - Amendments to the Fair Value Option (IAS 28)
Invitation to Comment
Invitation to Comment - Amendments to the Fair Value Option (IAS 28)
The consultation closes on 10 November 2026.
-
1
Initiation
Hide all milestone documentation
The UKEB published its Project Initiation Plan on 10 February 2026.
Project Initiation Plan - Amendments to the Fair Value Option (IAS 28)
Open for Comment
Deadline: 10 November 2026