IASB publishes clarifications on the fair value option in IAS 28

The IASB published has published amendments to the Fair Value Option for Investments in Associates and Joint Ventures in IAS 28.

The final amendments confirm the proposals set out in Exposure Draft Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Proposed amendments to IAS 28) published on 19 February 2026.

Therefore, paragraphs 18–19 of IAS 28 are amended to clarify that an entity that has a main business activity of investing in particular types of assets (as set out in paragraph 49(a) of IFRS 18) is eligible to elect the fair value option in IAS 28.

Entities are required to apply the amendments to IAS 28 at the same time, and on the same basis, as it applies IFRS 18, which is effective for annual reporting periods beginning on or after 1 January 2027.

The IASB was informed of diversity in how the requirements for the fair value option in IAS 28 are applied and the effects of that diversity on the classification of income and expenses in the statement of profit or loss in accordance with IFRS 18. The amendments clarify which entities are eligible to measure investments using the fair value option in IAS 28, which is particularly important because more entities are considering whether to elect that option as part of their implementation of IFRS 18.