CERTYNEX IFRS ACADEMY

What should be remembered about the 2024 exposure draft on the equity method, which proposes among other things not to recognise previously unrecognised losses when an additional interest is bought?

It is a rule in force since its publication, replacing the stop on recognising losses when the share reaches the investor's interest.

It is a mandatory interpretation that clarifies the rule in force without changing it, applicable to the current year's accounts.

It is a proposal, which does not amend the Standard; the rule in force remains to stop recognising losses when the share reaches the interest.

It is a rule that already applies to associates, but does not concern joint ventures, for which the previous rule remains.