(a) the investment entity associate or joint venture is initially recognised;
(b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent. [IAS 28.36A]. 7.8.2 Temporary exemption from IFRS 9 applied by an insurer For an insurer that meets specified criteria, IFRS 4 – Insurance Contracts – provides a temporary exemption that permits, but does not require, the insurer to apply IAS 39 rather than IFRS 9 until IFRS 17 becomes effective. An entity is permitted, but not required, to retain the relevant accounting policies applied by the associate or joint venture as follows: (a) the entity applies IFRS 9 but the associate or joint venture applies the temporary exemption from IFRS 9; or (b) the entity applies the temporary exemption from IFRS 9 but the associate or joint venture applies IFRS 9. [IFRS 4.20O]. When an entity uses the equity method to account for its investment in an associate or joint venture: (a) if IFRS 9 was previously applied in the financial statements used to apply the equity method to that associate or joint venture (after reflecting any adjustments made by the entity), then IFRS 9 shall continue to be applied; or (b) if the temporary exemption from IFRS 9 was previously applied in the financial statements used to apply the equity method to that associate or joint venture (after reflecting any adjustments made by the entity), then IFRS 9 may be subsequently applied. [IFRS 4.20P]. An entity may apply the above exemptions separately for each associate or joint venture. [IFRS 4.20Q]. 7.9 Loss-making associates or joint ventures An investor in an associate or joint venture should recognise its share of the losses of the associate or joint venture until itsjoint venture, at the later of the date on which: (a) the investment entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent. [IAS 28.36A]. 7.8.2 Temporary exemption from IFRS 9 applied by an insurer For an insurer that meets specified criteria, IFRS 4 – Insurance Contracts – provides a temporary exemption that permits, but does not require, the insurer to apply IAS 39 rather than IFRS 9 until IFRS 17 becomes effective. An entity is permitted, but not required, to retain the relevant accounting policies applied by the associate or joint venture as follows: (a) the entity applies IFRS 9 but the associate or joint venture applies the temporary exemption from IFRS 9; or (b) the entity applies the temporary exemption from IFRS 9 but the associate or joint venture applies IFRS 9. [IFRS 4.20O]. When an entity uses the equity method to account for its investment in an associate or joint venture: (a) if IFRS 9 was previously applied in the financial statements used to apply the equity method to that associate or joint venture (after reflecting any adjustments made by the entity), then IFRS 9 shall continue to be applied; or (b) if the temporary exemption from IFRS 9 was previously applied in the financial statements used to apply the equity method to that associate or joint venture (after reflecting any adjustments made by the entity), then IFRS 9 may be subsequently applied. [IFRS 4.20P]. An entity may apply the above exemptions separately for each associate or joint venture. [IFRS 4.20Q]. 7.9 Loss-making associates or joint ventures An investor in an associate or joint venture should recognise its share of the losses of the associate or joint venture until its share of losses equals or exceeds its interest in the associate or joint venture, at which point the investor discontinues recognising its share of further losses. For this purpose, the investor’s interest in an associate or joint venture is the carrying amount of the investment in the associate or joint venture under the equity method together with any long-term interests that, in substance, form part of the investor’s net investment in the associate or joint venture. For example, an item for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, an extension of the entity’s investment in that associate or joint venture. [IAS 28.38]. The items that form share of losses equals or exceeds its interest in the associate or joint venture, at which point the investor discontinues recognising its share of further losses. For this purpose, the investor’s interest in an associate or joint venture is the carrying amount of the investment in the associate or joint venture under the equity method together with any long-term interests that, in substance, form part of the investor’s net investment in the associate or joint venture. For example, an item for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, an extension of the entity’s investment in that associate or joint venture. [IAS 28.38]. The items that form