BC278 When an entity applies the equity method, paragraphs 35–36 of IAS 28 Investments in Associates and Joint Ventures require the entity to adjust its associate’s or joint venture’s accounting policies to conform them to the entity’s accounting policies. The 2015 ED did not propose any relief from this requirement. However, in the light of the feedback received, the Board decided that:

(a) an entity that applies IFRS 9 would be permitted, but not required, to retain the IAS 39 accounting used by any associate or joint venture that applies the temporary exemption from IFRS 9 in its financial statements;

(b) an entity that applies the temporary exemption from IFRS 9 would be permitted, but not required, to retain the IFRS 9 accounting used by any associate or joint venture in its financial statements; and

(c) these reliefs would be available separately for each associate or joint venture.