Australian Government
Australian Accounting Standards Board
Thursday, August 13, 2026
The AASB has issued AASB 2026-3 to clarify which entities are eligible to measure investments in associates and joint ventures using fair value rather than the equity method.
AASB 2026-3 amends AASB 128 Investments in Associates and Joint Ventures to clarify which entities are eligible to measure investments in associates and joint ventures at fair value through profit or loss in accordance with AASB 9 Financial Instruments rather than applying the equity method under AASB 128.
Specifically, the amendments clarify the meaning of a ‘similar entity’ to venture capital organisations, mutual funds and unit trusts, which are permitted under paragraphs 18–19 of AASB 128 to use the fair value measurement option. The amendments clarify that ‘similar entities’ include entities whose main business activity is investing in particular types of assets, as described in paragraph 49(a) of AASB 18 Presentation and Disclosure in Financial Statements.
AASB 2026-3 Amendments to Australian Accounting Standards – Fair Value Option for Investments in Associates and Joint Ventures applies to annual reporting periods beginning on or after 1 January 2027, except that it applies to not-for-profit entities and to superannuation entities applying AASB 1056 Superannuation Entities to annual reporting periods beginning on or after 1 January 2028. Earlier application is permitted.