IASB publishes ED on clarifying the fair value option in IAS 28

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

The ED proposes amending paragraphs 18–19 of IAS 28 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.

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 ED clarifies 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. As IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027; the IASB intends to finalise any amendments to IAS 28 by mid-2026.

The consultation is open until 20 April 2026.