Download Quick Reference on Ind AS 28 Investments in Associates and Joint Ventures
The Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.
The Standard shall be applied by all entities that are investors with joint control of, or significant influence over, an investee.
An associate is an entity over which the investor has significant influence.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies.
If an entity holds, directly or indirectly through intermediary (eg subsidiaries), 20 per cent or more of the voting power of the investee, it is presumed that the entity has significant influence, unless it can be clearly demonstrated that this is not the case. Conversely, if the entity holds, directly or indirectly through intermediary (eg subsidiaries), less than 20 per cent of the voting power of the investee, it is presumed that the entity does not have significant influence, unless such influence can be clearly demonstrated. A substantial or majority ownership by another investor does not necessarily preclude an entity from having significant influence.