Updated 7 October 2026 · Reviewed by IFRS Buddy Editorial Team
2026 was a year of consolidation and deepened deliberation across multiple long-running projects. The IASB advanced Financial Instruments with Characteristics of Equity through major redeliberation rounds, launched a dedicated research initiative to address lessee cost burdens under IFRS 16, and elevated the Statement of Cash Flows project from research to formal standard-setting. Parallel efforts on Intangible Assets selection, Amortised Cost Measurement, and a Post-implementation Review of IFRS 16 gained momentum, signaling the Board's commitment to both modernizing standards and reducing preparer compliance friction. By mid-2026, the IASB had finalised amendments to IAS 28, issued IFRS 20 on rate-regulated activities, introduced a significant new equity method policy choice for transactions with associates and subsidiaries (extended to separate financial statements in June), and opened a narrow-scope project on IFRS 16 rent concessions arising from the Post-implementation Review. In July, the Board concluded that multi-year Post-implementation Review of IFRS 16, confirming the Standard is working as intended while adding two new lessee-focused pipeline projects, substantially completed its IAS 28 equity method disclosure and transition redeliberations, tentatively decided a first wave of new non-cash transaction disclosure requirements for IAS 7, and advanced its Post-implementation Review of IFRS 9 hedge accounting toward a Request for Information planned for September 2026. In September, the Board took the Equity Method project a decisive step further, voting to begin balloting the revised IAS 28 without re-exposure — albeit with one dissenting member — while also approving publication of the planned Request for Information on IFRS 9 hedge accounting with a 120-day comment period, and tentatively deciding new IAS 7 guidance on classifying acquisition-related cash payments.
Financial Instruments with Characteristics of Equity — Tentatively decided to proceed with proposed amendments to IAS 32 on classification of derivatives on own equity under the fixed-for-fixed condition, with clarifications on consideration fixing, group entity applications, and adjustment terminology (February 2026).
Statement of Cash Flows and Related Matters — Formally moved the project from the research programme to the standard-setting work plan; decided not to establish a consultative group (January 2026).
Post-implementation Review of IFRS 16 Leases (Lessee Costs) — Tentatively decided to add a research project exploring feasibility of mitigating higher-than-expected ongoing measurement costs for lessees, with particular focus on lease liability remeasurement frequency and simplified discount rate mechanics (March 2026). Unanimously declined to revisit guidance clarity or implicit rate requirements.
Intangible Assets — Continued test case selection and workstream exploration on the definition and recognition of intangible assets; deferred decisions pending further findings on user information needs (January 2026).
Post-implementation Review of IFRS 16 (Overall) — Signaled finalization of overall Post-implementation Review deliberations by Q3 2026, with project report and feedback statement expected before year-end (January 2026).
Consistent Application Activities — Approved updates to six agenda decisions and recommended withdrawal of two agenda decisions via the IFRS Interpretations Committee (January 2026).
IAS 32 — Contingent Settlement Provisions — Clarified classification rules for instruments with contingent settlement provisions: IAS 32 paragraph 25 applies only where settlement giving rise to a financial liability can occur solely as a result of an uncertain event outside the control of both issuer and holder; introduced a "substantive business purpose" test for genuineness of contractual terms; measurement issues moved to the Amortised Cost Measurement project (April 2026).
IFRS 16 Post-implementation Review — Cash Flow Disclosures — Tentatively decided to explore requiring lessees to disclose the components of total lease cash outflows together with the corresponding line item in the statement of cash flows; to be developed within the IAS 7 project (April 2026).
IAS 28 Equity Method — Cost and Transactions — Confirmed inclusion of deferred tax effects in the carrying amount of investments in associates; confirmed bargain purchase gain to be recognised in profit or loss; introduced an accounting policy choice for full or restricted recognition of gains and losses on transactions with associates (except business transfers) (April–May 2026).
Business Combinations — Disclosures and IAS 36 — Retained threshold approach at 10% revenue/assets for performance disclosure subset; refined exemption wording; removed exclusion of uncommitted restructuring cash flows from IAS 36 value-in-use calculations (April 2026).
Statement of Cash Flows (IAS 7) — Disaggregation and Financing Liabilities — Proposed application guidance for cash flow disaggregation consistent with balance sheet disaggregation; clarified disclosure objective for financing liabilities reconciliation (April–May 2026).
IFRS 18 / Pillar Two — Decided to explore amending IFRS 18 to permit or require classification of non-income tax charges that are "covered taxes" under OECD Pillar Two rules within the income taxes category of the income statement (May 2026). Following member pushback on the Exposure Draft approach, decided in June to explore alternative mechanisms to achieve the same classification objective (11 of 13 agreed).
IAS 28 Fair Value Option Amendments — Finalised: entities whose main activity is investing per IFRS 18 paragraph 49(a) are eligible for the IAS 28 fair value option; amendments expected to be issued mid-2026 (May 2026).
IAS 37 Levies — Non-rebuttable Presumption — Made the constraining presumption for levy recognition non-rebuttable: past-event condition met when entity has obtained the required economic benefit or conducted the required activity (May 2026).
Rate-regulated Activities (IFRS 20) — IASB received implementation update; IFRS 20 expected to be issued in May 2026.
Post-implementation Review of IFRS 16 — Rent Concessions and Sale-and-Leaseback — Added a narrow-scope project, joined with the March 2026 cost-reduction research project, to clarify lessee accounting for rent concessions under IFRS 16 and IFRS 9. Decided to take no action on most other RFI feedback, including interactions with IFRS 15, IAS 38, and lessor requirements (June 2026).
Amortised Cost Measurement — Modification and Derecognition (IFRS 9) — Tentatively decided that determining whether a financial instrument modification is substantial requires a holistic, multi-factor analysis of contractual cash flow changes, rather than reliance on the 10 per cent test alone (June 2026).
Equity Method (IAS 28) — Separate Financial Statements — Extended the accounting policy choice for gains and losses on transactions with associates and subsidiaries to separate financial statements, independent of the consolidated-level policy; confirmed related IFRS 12 and IFRS 19 disclosure amendments (June 2026).
Statement of Cash Flows (IAS 7) — Derivatives and Government Grants — Tentatively decided on classification guidance for cash flows from risk-management derivatives (generally following the hedged item) and government grants (asset-related grants as investing activities, presented gross; income-related grants as operating activities) (June 2026).
Post-implementation Review of IFRS 16 Leases — Concluded — Concluded the requirements in IFRS 16 are overall working as intended; confirmed two new pipeline projects (a lessee cost-mitigation research project on remeasurement frequency and discount rates, and a narrow-scope amendment on rent-concession accounting under IFRS 16/IFRS 9); decided sufficient work is complete to prepare a project summary and feedback statement, expected Q4 2026, subject to Due Process Oversight Committee approval (July 2026).
Equity Method (IAS 28) — Disclosures, Transition and Sweep Issues — Substantially completed redeliberation: confirmed the accounting policy choice disclosure and related IFRS 12 disclosure objective for transactions with associates; confirmed a transition mechanism (including a new requirement for investors with unrecognised losses at the transition date) and first-time adopter relief under IFRS 1; resolved remaining sweep issues, including withdrawing three superseded Agenda Decisions. Next step is due process for issuing the revised Standard (July 2026).
Statement of Cash Flows (IAS 7) — Non-cash Transactions — Tentatively decided to propose new application guidance and disclosure requirements for non-cash investing and financing transactions in a future Exposure Draft, including a single structured-format note with cross-referenced transaction amounts; began planning research on a possible statement of cash flows approach for financial institutions (July 2026).
Post-implementation Review of IFRS 9 — Hedge Accounting — Completed feedback analysis and academic literature review from the first PIR phase; tentatively decided the scope of questions for a Request for Information on IFRS 9 hedge accounting and related IFRS 7 disclosures, planned for publication in September 2026 (July 2026).
IFRS 18 / Non-Income Tax Presentation — Reached substantial tentative decisions on classifying, disaggregating and disclosing tax charges that are direct substitutes for income taxes within the income taxes category of profit or loss (July 2026).
Equity Method (IAS 28) — Balloting Begins — Confirmed due process requirements had been met and voted to begin the balloting process for the revised Standard without re-exposure, alongside final sweep-issue and IFRS 19 subsidiary disclosure decisions and a proposed 1 January 2029 effective date; one member indicated an intention to dissent (September 2026).
Post-implementation Review of IFRS 9 — Hedge Accounting RFI Approved — Approved publication of the Request for Information on hedge accounting and related IFRS 7 disclosures, with a 120-day comment period (September 2026).
Statement of Cash Flows (IAS 7) — Acquisition-related Payments — Tentatively decided that payments of deferred and contingent consideration from a business combination are investing activities, payments of the acquiree's pre-existing debt are financing activities, and transaction costs are operating activities; also proposed a new disclosure objective for specified non-cash changes in assets and liabilities (September 2026).
Financial Instruments with Characteristics of Equity — Continued redeliberating obligations to purchase own equity instruments, tentatively deciding the debit entry on initial recognition, profit-or-loss treatment of remeasurement gains and losses, and the accounting on expiry of written put options over non-controlling interest (September 2026).
Amortised Cost Measurement (IFRS 9) — Clarified application of the 10 per cent test to instruments with options or contingent terms and to revolving credit facilities, and tentatively decided to require an effective interest rate adjustment on certain non-derecognising modifications (September 2026).
IFRS 18 / Non-Income Tax Presentation — Tentatively decided new IFRS 19 disclosure requirements for eligible subsidiaries and confirmed retrospective application; set a 120-day comment period for the Exposure Draft, expected in Q4 2026, with two members intending to dissent (September 2026).
IAS 37 Provisions — Targeted Improvements — Relocated a supporting recognition requirement following the earlier decision to omit proposed paragraph 14Q, and confirmed the executory contracts scope exclusion and definition wording (September 2026).
IFRS 20 Regulatory Assets and Regulatory Liabilities — Expected to be issued in May 2026; provides a comprehensive framework for entities with rate-regulated activities.
IAS 28 Fair Value Option Amendments — Finalised in May 2026; expected publication mid-2026. Clarifies eligibility for entities whose main activity is investing per IFRS 18 paragraph 49(a).
Other projects (IAS 32, IAS 7, IAS 28 Equity Method, Business Combinations, IFRS 9 Amortised Cost Measurement) remain in redeliberation phases with exposure drafts and final standards to follow.
IAS 28 Accounting Policy Choice — The choice between full and restricted recognition of gains and losses on transactions with associates and subsidiaries — now available in both consolidated and separate financial statements — is a significant change for entities with complex group structures. Finance teams should evaluate implications before the final standard is issued.
IFRS 9 Modification Test — The proposed shift from the 10 per cent test to a holistic, multi-factor analysis for determining substantial modification will affect how entities assess loan restructurings, forbearance arrangements, and other debt renegotiations, particularly where the reason for modification (commercial versus financial-difficulty driven) matters to the outcome.
IAS 7 Cash Flow Reforms — The cumulative set of proposed IAS 7 changes — disaggregation aligned with the balance sheet, financing liabilities reconciliation, risk-management derivative classification, and gross presentation of asset-related government grants — represents one of the most extensive updates to cash flow statement requirements in years. Preparers should review the granularity of current cash flow presentation well ahead of finalisation.
IFRS 18 Pillar Two Amendment — With the original Exposure Draft approach facing Board pushback in June, entities should watch for the alternative mechanism the IASB develops to classify Pillar Two covered taxes within the income taxes category of the income statement.
IAS 7 Non-cash Transaction Disclosures — Following the Post-implementation Review of IFRS 16, the IASB is moving toward a future Exposure Draft requiring a single, structured-format note disclosing non-cash investing and financing transactions with cross-referenced amounts — entities with material non-cash activity (asset swaps, debt-for-equity conversions, non-cash lease changes) should review current disclosure practice ahead of finalisation.
IAS 28 Balloting Under Way — With the revised Standard now in balloting ahead of a proposed 1 January 2029 effective date, entities with associates, joint ventures or subsidiaries held under the equity method should move from monitoring to active preparation — assessing the new policy choice for recognising transaction gains and losses in both consolidated and separate financial statements.
IFRS 9 Hedge Accounting RFI — 120-Day Window to Respond — The IASB approved publication of its Request for Information on hedge accounting and related IFRS 7 disclosures in September, with a 120-day comment period. Entities with material hedging programmes have a concrete opportunity to weigh in on whether current requirements are working as intended.
IAS 7 Acquisition-related Payments — Entities planning or completing business combinations should watch the tentative IAS 7 classification guidance — deferred and contingent consideration as investing, pre-existing acquiree debt as financing, and transaction costs as operating — for how it will reshape cash flow statement presentation once finalised.