Year at a glance

2025 was a year of intensive redeliberation and refinement across multiple complex projects. The IASB progressed Financial Instruments with Characteristics of Equity through multiple rounds of stakeholder consultation and tentative decisions on presentation and classification rules—including a significant withdrawal of proposed requirements on laws and regulations. Simultaneously, the board advanced Rate-regulated Activities toward a prospective accounting standard with detailed decisions on regulatory asset/liability measurement and disclosure, while launching a post-implementation review of IFRS 16 Leases. Business Combinations disclosures remained under active redeliberation, and the board began preparatory work on the Equity Method revision and a future PIR of IFRS 9 hedge accounting.

Major tentative decisions

Financial Instruments with Characteristics of Equity — The IASB tentatively decided to require separate presentation in the statement of profit or loss of profit/loss attributable to ordinary shareholders, participating rights holders, and non-participating rights holders (June 2025). The board withdrew proposed requirements on effects of relevant laws or regulations on classification (July 2025). Tentative decisions proceeded on reclassification of financial liabilities and equity instruments with targeted refinements (September 2025). Further discussion on fixed-for-fixed condition derivatives continued through year-end (December 2025).

Rate-regulated Activities — The prospective Accounting Standard Regulatory Assets and Regulatory Liabilities received multiple tentative decisions: no minimum interest rate requirement; quantitative disclosure of recovery timing using time bands disaggregated by whether regulatory interest rates apply (May 2025). The board decided entities must use undiscounted cash flows and market-consistent assumptions for timing estimates (May 2025). Inflation adjustment treatment and recognition conditions were finalized in October 2025, with requirements to track direct relationships between regulatory capital base and underlying items.

Equity Method — The IASB tentatively decided to require fair value measurement of associate/joint venture costs at acquisition, including previously held interests and contingent consideration measured at fair value (November 2025). Post-acquisition contingent consideration would be remeasured at fair value with changes in profit or loss, except equity-classified instruments (November 2025).

Post-implementation Review of IFRS 16 Leases — The board approved publication of a Request for Information with a 120-day comment period (May 2025). Tentative decisions included questions assessing whether IFRS 16 meets its objective, clarity of core principles, and whether benefits to users justify costs—but rejected questions comparing with FASB Topic 842 (March 2025).

Business Combinations—Disclosures, Goodwill and Impairment — Extensive redeliberation continued on disclosure thresholds for business combination performance and synergy information (April, July, December 2025). Tentative decisions in December addressed targeted IAS 36 amendments to clarify goodwill monitoring and cash-generating unit allocation.

Intangible Assets — The project entered initial feedback analysis phase in February 2025 from meetings with stakeholders and user surveys, with subsequent analysis of evidence to inform project advancement.

Amortised Cost Measurement — Project planning and consultation with stakeholder groups finalized the scope and approach; the board prepared to begin deliberations on application issues (February 2025).

Projects in progress

• Financial Instruments with Characteristics of Equity — Ongoing redeliberation of classification, presentation, and disclosure amendments to IAS 32, IFRS 7, IFRS 18, and IFRS 19; expected to move toward exposure draft revision or final standard in 2026.
• Rate-regulated Activities — Prospective IFRS Accounting Standard nearing completion; remaining sweep issues being resolved with publication expected in early 2026.
• Business Combinations—Disclosures, Goodwill and Impairment — Multi-year redeliberation ongoing; decisions on disclosure exemptions and IAS 36 targeted amendments pending finalization.
• Equity Method (IAS 28) — Active redeliberation of measurement, recognition, and accounting treatment proposals; likely to progress to exposure draft phase in 2026.
• Post-implementation Review of IFRS 16 Leases — Request for Information published June 2025; feedback analysis and research phase underway.
• Intangible Assets — Early-stage research and stakeholder feedback gathering completed; analysis phase underway to inform future direction.
• Amortised Cost Measurement — Project plan finalized; deliberations on application issues commenced.
• Provisions—Targeted Improvements — Maintenance project identified in January 2025; scope and approach under development.

New standards and amendments

IFRS 18 Presentation and Disclosure in Financial Statements remained the vehicle for amendments on equity instrument presentation decisions (June 2025), superseding relevant IAS 1 requirements. IFRS 19 Subsidiaries without Public Accountability: Disclosures received proposed disclosure amendments linked to equity instrument classification (June 2025). IFRIC agenda decisions on Guarantees Issued on Obligations of Other Entities and Revenue from Tuition Fees (IFRS 15) were approved for publication in the IFRIC Update (April 2025). No major new standards reached final issuance during 2025; activity focused on amendments and post-implementation reviews.

What to watch in the coming year

1. Financial Instruments with Characteristics of Equity finalization — Expect the IASB to resolve remaining classification issues (particularly fixed-for-fixed condition derivatives and shareholder decision-making rights) and issue either a revised exposure draft or final amendments to IAS 32, IFRS 7, IFRS 18, and IFRS 19 in H1 2026, affecting equity hybrid instrument accounting.

1. Rate-regulated Activities standard issuance — The prospective IFRS Accounting Standard on Regulatory Assets and Regulatory Liabilities is expected to be finalized and published in early 2026, introducing new recognition and measurement principles for rate-regulated entities.

1. IFRS 16 PIR outcomes and IFRS 9 hedge accounting PIR launch — The IFRS 16 RFI closes in September 2025; feedback analysis will inform whether improvements are warranted. Concurrently, the board will begin the PIR of IFRS 9 hedge accounting requirements in Q1 2026, potentially surfacing application issues with expected impact by 2027.