20 February 2026To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTAmendments to the Fair Value Option for Investments in Associatesand Joint Ventures (Proposed amendments to IAS 28)
Comments to be received by 16 March 2026The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Exposure Draft (ED) Amendments to the Fair Value Option for Investments inAssociates and Joint Ventures (Proposed amendments to IAS 28 Investments in Associates andJoint Ventures). The ED is available on the Institute's website.Stakeholders informed the IASB of the diversity in how the fair value option in IAS 28 is appliedand the effects of that diversity on the classification of income and expenses in the statement ofprofit or loss in accordance with IFRS 18 Presentation and Disclosure in Financial Statements.This issue has taken on increased importance as more companies are considering whether toelect that option as part of implementing IFRS 18.In response to the stakeholders’ feedback, the IASB is proposing narrow-scope amendments toparagraphs 18-19 of IAS 28 to clarify that an entity that has a main business activity of investingin particular types of assets (as set out in paragraph 49(a) of IFRS 18) is eligible to elect the fairvalue option in IAS 28. The proposed amendments aim to improve consistency in application andprovide timely clarity ahead of the effective date of IFRS 18.Impact on entities in Hong KongThe proposed amendments are expected to affect entities in Hong Kong whose main businessactivity is investing in assets, and which hold interests in associates or joint ventures as part ofthose activities. These entities primarily include insurance companies and may also include otherentities that invest in assets as a main business activity, such as banks and asset managemententities. The extent of impact is expected to vary depending on the significance of the investmentsin associates and joint ventures and the accounting policy choices made by individual entities.The FRSC invites your comments on the ED by 16 March 2026 to allow your comments to beconsidered in developing its response to the IASB. Comments should be supported by specificreasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.
Invitation to comment on the IASB Exposure Draft Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Proposed amendments to IAS 28)
下载原件20 February 2026To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTAmendments to the Fair Value Option for Investments in Associatesand Joint Ventures (Proposed amendments to IAS 28)
Comments to be received by 16 March 2026The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Exposure Draft (ED) Amendments to the Fair Value Option for Investments inAssociates and Joint Ventures (Proposed amendments to IAS 28 Investments in Associates andJoint Ventures). The ED is available on the Institute's website.Stakeholders informed the IASB of the diversity in how the fair value option in IAS 28 is appliedand the effects of that diversity on the classification of income and expenses in the statement ofprofit or loss in accordance with IFRS 18 Presentation and Disclosure in Financial Statements.This issue has taken on increased importance as more companies are considering whether toelect that option as part of implementing IFRS 18.In response to the stakeholders’ feedback, the IASB is proposing narrow-scope amendments toparagraphs 18-19 of IAS 28 to clarify that an entity that has a main business activity of investingin particular types of assets (as set out in paragraph 49(a) of IFRS 18) is eligible to elect the fairvalue option in IAS 28. The proposed amendments aim to improve consistency in application andprovide timely clarity ahead of the effective date of IFRS 18.Impact on entities in Hong KongThe proposed amendments are expected to affect entities in Hong Kong whose main businessactivity is investing in assets, and which hold interests in associates or joint ventures as part ofthose activities. These entities primarily include insurance companies and may also include otherentities that invest in assets as a main business activity, such as banks and asset managemententities. The extent of impact is expected to vary depending on the significance of the investmentsin associates and joint ventures and the accounting policy choices made by individual entities.The FRSC invites your comments on the ED by 16 March 2026 to allow your comments to beconsidered in developing its response to the IASB. Comments should be supported by specificreasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.