The CA ANZ and CPA Australia submission to IASB ED 2024/7 has provided overall support to the IASB’s plans to make some narrow scope amendments to IAS 28 Investments in Associates and Joint Ventures. These changes seek to address some of the key application issues with equity accounting that are causing diversity in practice worldwide, including in Australia and New Zealand. 
However, the submission recommends that the final amendments would benefit from clearer explanation and justification of the application of the key principles if they are to be implemented effectively so puts forward several suggested improvements.

The submission also reiterates our concern that these amendments are only a small portion of the range of application issues with equity accounting that have been raised with the IASB by our members and other stakeholders in recent years. The current IASB project further highlights the need for a much wider scope project if all the key issues are to be resolved. We have therefore again recommended that the IASB consider undertaking a much more holistic review of the equity method of accounting by including such a project in its 2025 Agenda Consultation.