Updated 7 July 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.
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).
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.