Document ID: chunk:federal_register_of_legislation:F2025C00173:body:0:p2
Version: federal_register_of_legislation:F2025C00173
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equal authority.  Paragraphs in bold type state the main principles.  AASB 128 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations, and AASB 1057 Application of Australian Accounting Standards.  In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

Comparison with IAS 28
AASB 128 Investments in Associates and Joint Ventures as amended incorporates IAS 28 Investments in Associates and Joint Ventures as issued and amended by the International Accounting Standards Board (IASB).  Australian‑specific paragraphs (which are not included in IAS 28) are identified with the prefix "Aus".  Paragraphs that apply only to not-for-profit entities begin by identifying their limited applicability.

Tier 1
For-profit entities complying with AASB 128 also comply with IAS 28.
Not-for-profit entities' compliance with IAS 28 will depend on whether any "Aus" paragraphs that specifically apply to not-for-profit entities provide additional guidance or contain applicable requirements that are inconsistent with IAS 28.

Tier 2
Entities preparing general purpose financial statements under Australian Accounting Standards – Simplified Disclosures (Tier 2) will not be in compliance with IFRS Standards.
AASB 1053 Application of Tiers of Australian Accounting Standards explains the two tiers of reporting requirements.

Accounting Standard AASB 128

The Australian Accounting Standards Board made Accounting Standard AASB 128 Investments in Associates and Joint Ventures under section 334 of the Corporations Act 2001 on 7 August 2015.

This compiled version of AASB 128 applies to annual periods beginning on or after 1 January 2025.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 7 November 2024 (see Compilation Details).

Accounting Standard AASB 128

Investments in Associates and Joint Ventures

Objective
1 The objective of this Standard is to prescribe the accounting for investments in associates and to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.
AusCF1 AusCF entities are:
               (a) not-for-profit entities; and
               (b) for-profit entities that are not applying the Conceptual Framework for Financial Reporting (as identified in AASB 1048 Interpretation of Standards).
For AusCF entities, the term 'reporting entity' is defined in AASB 1057 Application of Australian Accounting Standards and Statement of Accounting Concepts SAC 1 Definition of the Reporting Entity also applies.  For-profit entities applying the Conceptual Framework for Financial Reporting are set out in paragraph Aus1.1 of the Conceptual Framework.

Scope
2 This Standard shall be applied by all entities that are investors with joint control of, or significant influence over, an investee.

Definitions
3 The following terms are used in this Standard with