
Article 1 

1. The Annex to Regulation (EC) No 1126/2008 is amended as follows:
(a) International Financial Reporting Standard (IFRS) 1 First-time Adoption of International Financial Reporting Standards is amended as set out in the Annex to this Regulation;
(b) International Accounting Standard (IAS) 27 Separate Financial Statements is amended as set out in the Annex to this Regulation;
(c) International Accounting Standard 28 Investments in Associates and Joint Ventures is amended as set out in the Annex to this Regulation.
2. Any reference to IFRS 9 as laid down in the Annex to this Regulation shall be read as a reference to IAS 39 Financial Instruments: Recognition and Measurement.
Article 2 
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2016.
Article 3 
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 18 December 2015.
For the Commission
The President
Jean-Claude JUNCKER
ANNEX
Equity Method in Separate Financial Statements  Amendments to IAS 27 
Paragraphs 4–7, 10, 11B and 12 are amended and paragraph 18J is added.
 4. 
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Separate financial statements are those presented by an entity in which the entity could elect, subject to the requirements in this Standard, to account for its investments in subsidiaries, joint ventures and associates either at cost, in accordance with IFRS 9 Financial Instruments, or using the equity method as described in IAS 28 Investments in Associates and Joint Ventures.
 5. 

— associate
— equity method
— …
 6. Separate financial statements are those presented in addition to consolidated financial statements or in addition to the financial statements of an investor that does not have investments in subsidiaries but has investments in associates or joint ventures in which the investments in associates or joint ventures are required by IAS 28 to be accounted for using the equity method, other than in the circumstances set out in paragraphs 8–8A.
 7. 
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 10. 

((a)) at cost;
((b)) in accordance with IFRS 9; or
((c)) using the equity method as described in IAS 28.

The entity shall apply the same accounting for each category of investments. Investments accounted for at cost or using the equity method shall be accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations when they are classified as held for sale or for distribution (or included in a disposal group that is classified as held for sale or for distribution). The measurement of investments accounted for in accordance with IFRS 9 is not changed in such circumstances.

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 11B 

((a)) when an entity ceases to be an investment entity, the entity shall account for an investment in a subsidiary in accordance with paragraph 10. The date of the change of status shall be the deemed acquisition date. The fair value of the subsidiary at the deemed acquisition date shall represent the transferred deemed consideration when accounting for the investment in accordance with paragraph 10.

((i)) [deleted]
((ii)) [deleted]
((b)) when an entity becomes an investment entity, it shall account for an investment in a subsidiary at fair value through profit or loss in accordance with IFRS 9. The difference between the previous carrying amount of the subsidiary and its fair value at the date of the change of status of the investor shall be recognised as a gain or loss in profit or loss. The cumulative amount of any gain or loss previously recognised in other comprehensive income in respect of those subsidiaries shall be treated as if the investment entity had disposed of those subsidiaries at the date of change in status.
 12. 
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 18J Equity Method in Separate Financial Statements (Amendments to IAS 27), issued in August 2014, amended paragraphs 4–7, 10, 11B and 12. An entity shall apply those amendments for annual periods beginning on or after 1 January 2016 retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Earlier application is permitted. If an entity applies those amendments for an earlier period, it shall disclose that fact.
 Consequential amendments to other Standards 
Paragraph 39Z is added.

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 39Z Equity Method in Separate Financial Statements (Amendments to IAS 27), issued in August 2014, amended paragraph D14 and added paragraph D15A. An entity shall apply those amendments for annual periods beginning on or after 1 January 2016. Earlier application is permitted. If an entity applies those amendments for an earlier period, it shall disclose that fact.

In Appendix D, paragraph D14 is amended and paragraph D15A is added.
 D14 

((a)) at cost;
((b)) in accordance with IFRS 9; or
((c)) using the equity method as described in IAS 28.

…
 D15A 

((a)) the first-time adopter applies the exemption for past business combinations (Appendix C) to the acquisition of the investment.
((b)) if the entity becomes a first-time adopter for its separate financial statements earlier than for its consolidated financial statements, and

((i)) later than its parent, the entity shall apply paragraph D16 in its separate financial statements.
((ii)) later than its subsidiary, the entity shall apply paragraph D17 in its separate financial statements.

Paragraph 25 is amended and paragraph 45B is added
 25. 
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 45B Equity Method in Separate Financial Statements (Amendments to IAS 27), issued in August 2014, amended paragraph 25. An entity shall apply that amendment for annual periods beginning on or after 1 January 2016 retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Earlier application is permitted. If an entity applies that amendment for an earlier period, it shall disclose that fact.
