Tentative decisions

IFRS 9 Financial Instruments – Hedge Accounting Post-Implementation Review — The IASB decided to begin the post-implementation review of hedge accounting requirements in Q1 2026, with a project plan to follow.

IAS 36 Impairment of Assets – Business Combinations Goodwill Allocation — The IASB tentatively decided to retain four proposed amendments: (a) replace 'goodwill is monitored' with 'business associated with the goodwill is monitored'; (b) clarify that paragraph 80(b) acts as a ceiling to paragraph 80(a) allocations; (c) retain proposed paragraph 80A(b) with wording refinements; and (d) make no other changes. Eleven of 12 members agreed on (a), (c), and (d); all 12 agreed on (b).

IFRS 18 Presentation and Disclosure – Management-Defined Performance Measures (MPMs) — The IASB tentatively decided to: (a) include cash flow MPM requirements in IFRS 18, not IAS 7 (11 of 12 agreed); (b) extend the MPM definition to include subtotals of cash inflows and outflows (unanimous); (c) add application guidance on mixed income/expense and cash flow subtotals (unanimous); (d) require disclosure of income tax and non-controlling interest effects for reconciling items (10 of 12 agreed); (e) exclude operating, investing, and financing activity subtotals from MPM definition (unanimous); and (f) extend line-item disclosure requirements for MPM reconciliations to both profit-or-loss and cash-flow statements (unanimous).

IAS 7 Statement of Cash Flows – Classification and Presentation — The IASB tentatively decided to explore developing requirements for: acquisition-related payments, derivatives cash flows, government grant receipts, and amendments to the classification principle in paragraph 11. The board also agreed to revisit deferred payment classification and third-party finance provider cash flows after strengthening non-cash transaction disclosures (unanimous).

IAS 7 Statement of Cash Flows – Discontinued Operations Presentation — The IASB tentatively decided to propose requiring separate presentation of discontinued operations cash flows in the statement of cash flows (unanimous).

IAS 28 Investments in Associates and Joint Ventures – Fair Value Option Scope — The IASB tentatively decided to clarify that 'similar entities' in paragraphs 18–19 include entities that invest in associates and joint ventures as a main business activity (8 of 12 agreed). The board also tentatively decided not to explore permission for entities to revoke the fair value option, and to consult on proposals via exposure draft (unanimous).

Active projects

IAS 32 Financial Instruments: Presentation – Equity Derivatives Classification — The IASB continues redeliberating the 'fixed-for-fixed condition' requirements for derivatives on own equity following Exposure Draft feedback; further discussion on classification requirements is planned.

Business Combinations—Disclosures, Goodwill and Impairment — The IASB deliberated feedback on disclosure exemptions and goodwill allocation amendments; the proposed IAS 36 amendments have been tentatively approved and will advance.

Statement of Cash Flows and Related Matters — Three streams are active: cash flow MPMs (IFRS 18 amendments largely finalized), classification consistency improvements (IAS 7 exploration phase), and discontinued operations presentation (tentative decision made). The board will continue assessing improvements across all three topics.

Fair Value Option (IAS 28) — The IASB has tentatively approved the 'similar entities' clarification and decided to publish an exposure draft with a 60-day comment period (subject to Due Process Oversight Committee approval); balloting process is underway, though four members indicated intention to dissent.

IFRS 9 Hedge Accounting PIR — The IASB will now develop a detailed project plan for the post-implementation review launching in Q1 2026.

What it means for preparers

• Cash Flow Presentation Changes Ahead: Finance teams should prepare for potential changes to how cash flows from discontinued operations, derivatives, and acquisition-related payments are classified and presented. The IFRS 18 amendments on MPMs will require enhanced reconciliation disclosures showing line-item linkages to both profit-or-loss and cash-flow statements—begin assessing your current cash flow data infrastructure now.

• IAS 32 Equity Derivatives Complexity: Companies with complex own-equity derivatives should monitor the ongoing redeliberation of the 'fixed-for-fixed condition' requirements, as final guidance may alter classification outcomes and related disclosures.

• IAS 28 Fair Value Option Clarification: Investment entities and venture capital firms holding associates or joint ventures should monitor the upcoming exposure draft on 'similar entities' scope—the proposed clarification may broaden or narrow fair value option applicability in your investment portfolios.

• IFRS 9 Hedge Accounting Review Begins Soon: Organizations with significant hedging programs should anticipate potential changes to hedge accounting requirements as the PIR commences in Q1 2026; this may affect documentation, testing, and disclosure practices.

Standards in scope

• IFRS 9 Financial Instruments (hedge accounting)
• IFRS 18 Presentation and Disclosure in Financial Statements (MPMs, cash flow measures)
• IAS 7 Statement of Cash Flows (classification, discontinued operations)
• IAS 28 Investments in Associates and Joint Ventures (fair value option scope)
• IAS 32 Financial Instruments: Presentation (equity derivatives, fixed-for-fixed condition)
• IAS 36 Impairment of Assets (goodwill allocation, cash-generating units)