Tentative decisions

Rate-regulated Activities (IFRS 20) — 18 May 2026. The IASB received an update on plans to support the implementation and consistent application of IFRS 20 Regulatory Assets and Regulatory Liabilities. The IASB expects to issue IFRS 20 in May 2026.

Risk Mitigation Accounting — 19 May 2026. The IASB extended the comment letter deadline for the Exposure Draft on Risk Mitigation Accounting to 30 November 2026, to align it with the final submission date for fieldwork results (all 13 members agreed). Next step: consider feedback on the Exposure Draft.

Equity Method (IAS 28) — 20 May 2026. Continued redeliberation of the Exposure Draft on Equity Method of Accounting:

Presentation of loss recognition sequence: Confirmed the proposal that an investor first recognises its share of an associate's profit or loss and then the share of other comprehensive income, if both are losses that in aggregate exceed the carrying amount of the net investment (all 13 agreed). Withdrew the proposal that an investor continues to recognise its share of an associate's profit or loss and OCI after the investor has reduced the net investment to nil (11 of 13 agreed). Decided not to add to project scope a question on the sequence of recognising profit or loss vs OCI when resuming recognition after investment is reduced to nil (all 13 agreed).

Transactions with associates: Tentatively decided to introduce an accounting policy choice: an investor may choose either full or restricted recognition of gains and losses on ALL transactions with associates, EXCEPT for gains or losses on transfer of businesses (which must always be recognised in full) (12 of 13 agreed). Confirmed proposal to withdraw the 2014 amendments to Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (12 of 13 agreed). To amend IFRS 10 to require an investor choosing restricted recognition to also restrict gains and losses on loss of control of a subsidiary that is not a business (12 of 13 agreed). Disclosure requirements under each policy choice:

• Full recognition: disclose (i) accounting policy for recognising gains or losses on transactions with associates; (ii) gains or losses from downstream transactions.
• Restricted recognition: disclose (i) accounting policy; (ii) full reconciliation of restricted gains or losses (opening balance, amounts recognised in P&L in opening balance, restricted amounts during the period, closing balance); (iii) amount of restricted gains/losses at period end and where presented in the statement of financial position; (iv) line items in the statement of comprehensive income where restricted gains/losses are recognised (all 13 agreed).

Intangible Assets — 19 May 2026. Discussed user needs for information about recognised and unrecognised intangible assets and associated expenditure. No decisions taken. Next steps: consult advisory groups on implications for project direction; start discussing potential changes to the definition of an intangible asset.

Business Combinations — Disclosures, Goodwill and Impairment — 20 May 2026. Tentatively decided that the benefits of the suggested package of performance and expected synergy information disclosures would justify the costs (7 of 13 agreed). Next step: continue redeliberating proposals in the Exposure Draft.

Statement of Cash Flows and Related Matters (IAS 7) — 19 May 2026:

• Disaggregation of cash flows: Tentatively decided to propose application guidance requiring an entity to: (a) use the disaggregation of related balance sheet line items as the basis for disaggregating cash flow line items; (b) disclose how the disaggregation of cash flow line items differs from balance sheet item disaggregation, if applicable; (c) use similar labels for items with similar characteristics and different labels for items with different characteristics; (d) cross-refer notes that relate to more than one primary financial statement (all 13 agreed).
• Financing liabilities: Tentatively decided to propose clarifying the disclosure objective in IAS 7 paragraph 44A, requiring a reconciliation of opening and closing balances for liabilities arising from financing activities (all 13 agreed). Decided NOT to require disclosure of changes in additional assets and liabilities (e.g. cash) alongside financing liabilities (12 of 13 agreed). Confirmed previous decision not to define "net debt" or introduce additional net debt disclosure requirements (8 of 13 agreed).

Maintenance and consistent application

IFRS 18 / Pillar Two — Non-Income Tax Presentation — 19 May 2026. The IASB decided to explore amending IFRS 18 to permit or require entities to classify non-income tax charges that meet the definition of "covered taxes" under the OECD Pillar Two model rules within the income taxes category of the profit or loss statement (11 of 13 agreed). Deferred decision on whether it objects to certain Agenda Decisions (12 of 13 agreed to defer). Next step: decide whether to proceed with potential amendment to IFRS 18 and whether it objects to the Agenda Decisions.

Amendments to the Fair Value Option (IAS 28) — 20 May 2026. Finalised proposals to clarify that an entity whose main business activity is investing in particular types of assets (as set out in paragraph 49(a) of IFRS 18) is eligible to elect the fair value option in IAS 28 (all 13 agreed). Required application of IAS 28 amendments at the same time and on the same basis as IFRS 18 (all 13 agreed). Decided to explore an unrestricted fair value option as part of future work plan priorities (all 13 agreed). The IASB expects to issue the amendments to IAS 28 in mid-2026. Decided to issue amendments without re-exposure (all 13 confirmed compliance with due process; no member indicated intention to dissent).

Provisions — Targeted Improvements (IAS 37) — 18 May 2026. Tentatively decided to make the constraining presumption non-rebuttable: the past-event recognition condition for a levy is met when an entity has obtained the economic benefit or conducted the activity required by levy legislation. If multiple economic benefits or activities are required, the relevant one is whichever best reflects what the government is seeking to levy (11 agreed on (a); all 13 agreed on (b)). Tentatively decided to omit from IAS 37 the requirement proposed in paragraph 14Q of the Exposure Draft (12 of 13 agreed). Next step: decide the project direction, including whether to carry out further work, before making a final decision on possible application requirements.

Active projects

IFRS 20 Rate-regulated Activities — IFRS 20 expected to be issued in May 2026; implementation support plans being developed.

Risk Mitigation Accounting — Comment letter deadline extended to 30 November 2026; fieldwork ongoing.

Equity Method (IAS 28) — In redeliberation; new accounting policy choice for gains/losses on associate transactions is a major development. Next step: continue redeliberating remaining topics including upstream/downstream disclosure scope and potential commercial sensitivity exemption.

Intangible Assets — In research phase; advisory group consultation and definition exploration to begin.

Business Combinations — In redeliberation; synergy disclosure package provisionally justified.

Statement of Cash Flows (IAS 7) — Active standard-setting; disaggregation guidance and financing liabilities reconciliation both provisionally decided.

IAS 28 Fair Value Option Amendments — Finalised; expected publication mid-2026.

IAS 37 Provisions — Targeted improvements in progress; non-rebuttable levy presumption tentatively decided.

What it means for preparers

• Entities with interests in associates or joint ventures face a significant new accounting policy choice under IAS 28: full recognition versus restricted recognition of gains and losses on transactions with associates. The choice applies consistently to all transactions (except business transfers). Preparers should analyse which policy better aligns with their reporting objectives and begin evaluating the disclosure requirements of each option — particularly the detailed reconciliation required under restricted recognition.

• Entities subject to Pillar Two taxes should monitor the potential IFRS 18 amendment to classify covered taxes within the income taxes category in the profit or loss statement. If finalised, this change would affect the presentation of Pillar Two top-up taxes and the analytical metrics that users derive from the income statement.

• Preparers with complex cash flow structures should note that the IAS 7 disaggregation guidance will require cash flow line items to be broken down consistently with balance sheet line item disaggregation. Finance teams should review whether their current cash flow presentation is granular enough and prepare to add cross-references between notes and primary financial statements.

Standards in scope

• IAS 28 Investments in Associates and Joint Ventures
• IAS 7 Statement of Cash Flows
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets
• IFRS 18 Presentation and Disclosure in Financial Statements
• IFRS 20 Regulatory Assets and Regulatory Liabilities
• IFRS 10 Consolidated Financial Statements

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