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In October 2017, the IASB issued Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) ('the Amendments'), which were initially included in the ED/2017/1 Annual Improvements to IFRS Standards 2015-2017 Cycle issued in January 2017. The Amendments, effective for annual periods beginning on or after 1 January 2019, clarify that an entity applies IFRS 9 Financial Instruments to financial instruments in an associate or joint venture to which the equity method is not applied. These include long-term interests that, in substance, form part of the entity's net investment in an associate or joint venture.
EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the EU and EEA. EFRAG assesses that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG's recommendation is explained in the letter to the EC and the accompanying appendices.
Endorsement advice letter to the EC