The Authority Issues Its View on the Amendment of Standard No. 28
الهيئة تبدي وجهة نظرها في تعديل المعيار رقم 28
The International Accounting Standards Board published a proposed amendment to International Accounting Standard No. 28 concerning the application of the equity method, including requirements related to changes in ownership interests in associates. The Saudi Organization for Chartered and Professional Accountants, through its Accounting Standards Council, expressed agreement with the amendment's approach to measuring the cost of investment in an associate when significant influence is first achieved, specifically the remeasurement of the previously held interest at fair value. However, the Organization raised reservations about the absence of remeasurement when an investor increases its stake to the point of achieving significant influence, noting inconsistency with the staged-acquisition principles of IFRS 3, and also questioned the proposed treatment requiring full recognition of gains or losses from transactions with associates without addressing transactions that may lack commercial substance.
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