Investments in associates and joint ventures (paragraph C7) (para. BC423)

BC423 The IASB decided to provide transitional requirements in IFRS 18 to allow an eligible entity to elect to measure an investment in an associate or joint venture at fair value through profit or loss (as specified in paragraph 18 of IAS 28) when it first applies IFRS 18 (see paragraphs BC123-BC128). The IASB provided the election in IAS 28 because fair value measurement provides more useful information to users of the financial statements of those entities than would application of the equity method (see paragraph BC12 of the Basis for Conclusions on IAS 28). Some eligible entities might have chosen not to apply the election on initial recognition of an investment before they were aware of the effects of IFRS 18. If that is the case, the IASB concluded that an entity is permitted to apply that election on initial application of IFRS 18. An entity that applies the election is required to account for the applicable investments in the same way in its separate financial statements as re

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