Tentative decisions

Financial Instruments with Characteristics of Equity — The IASB tentatively decided to withdraw the proposed requirements related to the effects of relevant laws or regulations on the classification of financial instruments (unanimous, 13–0).

Business Combinations—Disclosures, Goodwill and Impairment (IAS 36 amendments) — The IASB tentatively decided to retain three proposals: (a) requiring disclosure of the reportable segment containing a cash-generating unit with goodwill; (b) removing the requirement to use pre-tax cash flows and discount rates in value-in-use calculations; and (c) requiring disclosure of whether the discount rate is pre-tax or post-tax (unanimous, 13–0).

Statement of Cash Flows and Related Matters (IFRS 18 extension) — The IASB tentatively decided to extend management-defined performance measure (MPM) requirements to cash flow measures not specified in IFRS Standards (12–1). The board also tentatively decided to apply MPM definition criteria and the rebuttable presumption to cash flow measures, and to extend MPM disclosure requirements to these measures (unanimous, 13–0). The board tentatively decided not to extend the requirement for income tax effects and non-controlling interests adjustments to cash flow measure reconciliations (unanimous, 13–0).

Active projects

Financial Instruments with Characteristics of Equity — The board withdrew proposed requirements on regulatory effects; redeliberation of reclassification requirements for financial liabilities and equity instruments will continue.

Business Combinations—Disclosures, Goodwill and Impairment — The board discussed auditability concerns regarding acquisition performance disclosures and synergies, and restructuring/asset enhancement cash flow proposals (no decisions taken); redeliberation of all proposals continues.

Statement of Cash Flows and Related Matters — Extension of IFRS 18 MPM requirements to cash flow measures has been tentatively approved; the board will assess potential improvements to financial reporting across all project topics.

Assessing Indicators of Hyperinflationary Economies (IAS 29) — An IFRIC Agenda Decision on hyperinflationary indicators received no board objections and will be published in July 2025.

Fourth Agenda Consultation — The board discussed project status and direction; members expressed support for a concurrent agenda consultation (details pending further redeliberation).

What it means for preparers

• Cash flow reporting transparency: If finalized, IFRS 18 MPM requirements will extend to non-GAAP cash flow measures. Finance teams should audit their public communications for cash flow metrics used outside financial statements and prepare detailed reconciliations to IFRS-specified totals, including clear labeling and justification of why each measure is useful.

• Goodwill impairment and segment disclosure: Pending finalization, entities will need to identify and disclose the reportable segment containing each cash-generating unit with goodwill, and clearly indicate whether discount rates used in impairment tests are pre-tax or post-tax—expect enhanced documentation of valuation assumptions.

• Regulatory classification relief: The withdrawal of proposed rules on regulatory effects on instrument classification removes a source of complexity; however, reclassification requirements remain under redeliberation, so monitor further updates on when financial liabilities or equity instruments may be reclassified.

Standards in scope

• IFRS 18 Presentation and Disclosure in Financial Statements
• IAS 36 Impairment of Assets
• IAS 29 Financial Reporting in Hyperinflationary Economies
• IAS 8 Basis of Preparation of Financial Statements
• IFRIC interpretations and Agenda Decisions