Updated 7 July 2026 · Reviewed by IFRS Buddy Editorial Team
Post-implementation Review of IFRS 16 — Rent Concessions and Sale-and-Leaseback — 23 June 2026. The IASB discussed stakeholder feedback on the Request for Information (RFI) on the Post-implementation Review of IFRS 16 Leases. Tentatively decided to add to its project pipeline a narrow-scope project clarifying how a lessee applies IFRS 16 and IFRS 9 Financial Instruments to account for a rent concession in which the only change to the lease contract is the lessor's forgiveness of lease payments (12 of 13 agreed), to be undertaken together with the cost-reduction-measures research project added in March 2026 (12 of 13 agreed). On the sale and leaseback of an asset in a single-asset entity, decided to consider the matter's priority together with other corporate wrapper matters in the next agenda consultation and to remove it from the maintenance project pipeline (all 13 agreed). Decided to take no action on stakeholder feedback about the interaction of IFRS 16 with IFRS 15 Revenue from Contracts with Customers — on assessing whether an asset transfer in a sale and leaseback is a sale (all 13 agreed) and on recognising a gain or loss in a sale and leaseback (7 of 13 agreed) — and with IAS 38 Intangible Assets on identifying leases (all 13 agreed), plus other standards raised by only a few respondents (all 13 agreed). Also decided to take no action on feedback about IFRS 16 lessor requirements, requirements for identifying a lease, and other minor matters (all 13 agreed).
Amortised Cost Measurement — Modification and Derecognition (IFRS 9) — 23 June 2026. Tentatively decided to propose that an entity determines whether a modification of a financial instrument is substantial (triggering derecognition) through a holistic analysis of changes in contractual cash flows, considering qualitative and quantitative factors; the existing "10 per cent test" in IFRS 9 paragraph B3.3.6 may supplement but would not on its own be decisive (11 of 13 agreed). Factors to consider include, but are not limited to: a change in the currency of principal or interest, which would suggest the modification is substantial; a change in cash flow characteristics affecting the SPPI assessment for a financial asset or embedded-derivative separation for a financial liability, which would suggest substantial; a change in borrower counterparty (unless between entities under common control), which would suggest substantial; and the reason for the modification — a commercial renegotiation to reset terms to current market conditions would suggest substantial, while a modification attributable to the borrower's financial difficulty would suggest not substantial. The relevance and weight of each factor depends on the type and characteristics of the instrument and general economic conditions; an entity must consider reasonable and supportable information available without undue cost or effort.
Equity Method (IAS 28) — Separate Financial Statements and Disclosures — 24 June 2026. Continued redeliberation of the Exposure Draft Equity Method of Accounting. Tentatively decided that an investor applying the equity method to associates or joint ventures in its separate financial statements may choose either restricted or full recognition of gains and losses on transactions with associates (except for transfers of businesses, always recognised in full) — independently of the policy chosen in its consolidated financial statements (all 13 agreed). A parent applying the equity method to subsidiaries in separate financial statements may similarly choose restricted or full recognition on transactions with subsidiaries (7 of 13 agreed). Withdrew proposals that an entity would not remeasure a previously held interest on obtaining control, or a retained interest on losing control, while continuing to apply the equity method (10 of 13 agreed). Decided not to add cost-measurement, step-acquisition, or loss-of-control application questions for investments in subsidiaries accounted for at cost to the project scope (all 13 agreed).
On disclosures, tentatively decided to confirm proposed amendments to IFRS 12 Disclosure of Interests in Other Entities requiring an investor to disclose: gains or losses from other changes in its ownership interest; information about contingent consideration arrangements; and a reconciliation between the opening and closing carrying amount for its associates — plus a new disclosure objective covering changes in the carrying amount of investments in associates (all 13 agreed). Decided that an investor applying the measurement relief on acquiring an additional ownership interest while retaining significant influence must disclose the use of that relief (9 of 13 agreed). For IFRS 19 Subsidiaries without Public Accountability: Disclosures, confirmed the contingent-consideration disclosure requirement for eligible subsidiaries but decided NOT to require the opening/closing reconciliation (all 13 agreed); eligible subsidiaries applying the measurement relief need NOT disclose its use (12 of 13 agreed).
Statement of Cash Flows — Derivatives and Government Grants (IAS 7) — 23 June 2026. Tentatively decided to propose classifying cash flows from a derivative used to manage identified risks, and not designated in a hedging relationship under IFRS 9, in the same manner as the cash flows of the item(s) whose risk is managed — aligning the treatment with hedge-designated derivatives (all 13 agreed) — or as operating activities where that classification would involve undue cost or effort (7 of 13 agreed). Cash flows from a derivative not used for risk management, relating to a transaction that involves only the raising of finance, would be classified as financing activities (12 of 13 agreed). On government grants: receipts from grants related to assets under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance would be classified as investing activities (11 of 13 agreed); receipts from grants related to income would be classified as operating activities (11 of 13 agreed); and receipts from asset-related grants would be presented gross — separately from the related payments — in the statement of cash flows (12 of 13 agreed).
IFRS 18 / Pillar Two — Non-Income Tax Presentation — 23 June 2026. Five IASB members indicated an intention to vote against publishing an Exposure Draft proposing to permit classifying non-income tax charges that meet the definition of "covered taxes" under the OECD's Pillar Two model rules within the income taxes category of profit or loss. Consequently, the IASB decided to explore alternative ways to require this classification (11 of 13 agreed). Next step: continue discussing the topic.
Provisions — Targeted Improvements (IAS 37) — 22 June 2026. The IASB discussed a plan for completing the project; no decisions were taken. Next steps: discuss feedback on aspects of the proposals not yet redeliberated, and further test the draft application requirements for levies to seek evidence they would have no major unintended consequences.
IASB Work Plan Update — 24 June 2026. The IASB received an update on its work plan; no decisions were taken. Next update expected in three to four months.
Joint IASB–FASB Education Meeting — 5 June 2026. The Boards held an education meeting covering business combinations and related topics, the Post-implementation Review of IFRS 16, the statement of cash flows, topics related to financial instruments, cryptoassets, and emerging issues. No decisions were made — the session was informational, sharing research and technical perspectives across both frameworks.
Post-implementation Review of IFRS 16 Leases — RFI feedback deliberation ongoing; new narrow-scope rent-concession project added to the pipeline, joined with the cost-reduction-measures research project.
Amortised Cost Measurement (IFRS 9) — Active standard-setting; holistic multi-factor approach to substantial-modification analysis tentatively decided.
Equity Method (IAS 28) — In redeliberation; separate-financial-statements policy choice and IFRS 12 / IFRS 19 disclosure amendments tentatively decided.
Statement of Cash Flows (IAS 7) — Active standard-setting; derivative and government-grant cash flow classification guidance tentatively decided.
IFRS 18 / Pillar Two — Board pushback on Exposure Draft approach; alternative classification mechanisms to be explored.
IAS 37 Provisions — Completion plan under discussion; further testing of draft levy application requirements planned.
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