IFRIC Publishes Compilation of Agenda Decisions — Volume 14 (Nov 2025 – Apr 2026)

What Are Agenda Decisions?

Agenda decisions are issued by the IFRS Interpretations Committee (the Committee) when it concludes that a standard-setting project should not be added to the work plan to address a specific application question. Rather than issuing a formal interpretation, the Committee publishes its reasoning on how existing IFRS Accounting Standards apply to the issue. These decisions are integral to the consistent application of IFRS and are authoritative guidance that entities must consider.

Volume 14 at a Glance

Volume 14 covers the period from November 2025 to April 2026 and contains:

• 8 new agenda decisions, four of which concern the recently effective IFRS 18 Presentation and Disclosure in Financial Statements
• 6 updates to previously published agenda decisions

New Agenda Decisions — IFRS 18

With IFRS 18 effective for annual periods beginning on or after 1 January 2027, the Committee has already begun addressing application questions:

1. Assessment of a Specified Main Business Activity for the Purposes of the Separate Financial Statements of a Parent Addresses how a parent entity determines whether it has a 'specified main business activity' when preparing its own separate financial statements, which affects the classification of income and expenses in the statement of profit or loss.

2. Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) Clarifies how foreign exchange differences on intragroup monetary items are classified in the statement of profit or loss under IFRS 18's category structure, particularly for items that eliminate on consolidation.

3. Classification of Gains and Losses on a Derivative Managing a Foreign Currency Exposure Addresses the classification of gains and losses on derivatives used to manage foreign currency risk — whether they fall within the investing, financing or operating categories depending on the nature of the hedged exposure.

4. Scope of the Requirement to Disclose Expenses by Nature Clarifies which entities are required to provide a disclosure of expenses by nature under IFRS 18, addressing questions about the interaction with existing sector-specific or national requirements.

New Agenda Decisions — Other Standards

5. Embedded Prepayment Option (IFRS 9 Financial Instruments) Addresses how to assess whether an embedded prepayment feature in a financial asset meets the conditions to be separated or not, including the solely payments of principal and interest (SPPI) test implications.

6. Determining and Accounting for Transaction Costs (IFRS 9) Clarifies which costs qualify as transaction costs for the purposes of measuring financial instruments at initial recognition, and how to account for them when an instrument is not subsequently measured at fair value through profit or loss.

7. Economic Benefits from Use of a Battery under an Offtake Arrangement (IFRS 16 Leases) Examines whether a contract to use a battery's capacity under an offtake arrangement contains a lease — specifically whether the customer controls the identified asset — and how the right-of-use asset is measured.

8. Fair Presentation and Compliance with IFRS Accounting Standards (IAS 1 Presentation of Financial Statements) Addresses the interaction between the fair presentation override in IAS 1 and the requirement to comply with all applicable IFRS Accounting Standards, clarifying the extremely rare circumstances in which departure from a specific requirement is permissible.

Updates to Previously Published Agenda Decisions

The Committee also updated six decisions to reflect new or amended standards:

• Disclosure of Revenues and Expenses for Reportable Segments (IFRS 8) — updated for IFRS 18 terminology
• Physical Settlement of Contracts to Buy or Sell a Non-financial Item (IFRS 9) — revised wording
• Normal Operating Cycle (IAS 1) — aligned with IFRS 18 presentation requirements
• Demand Deposits with Restrictions on Use arising from a Contract with a Third Party (IAS 7 Statement of Cash Flows) — updated guidance
• Disclosure of Changes in Liabilities Arising from Financing Activities (IAS 7) — reflects ongoing IAS 7 improvement project
• Subsequent Expenditure on Biological Assets (IAS 41 Agriculture) — clarification of recognition criteria

Why This Matters

Agenda decisions, while not formal interpretations, represent authoritative guidance on how IFRS should be applied. The IAS 8 amendments confirm that entities must consider agenda decisions when selecting and applying accounting policies. Preparers, auditors and regulators treat them as an integral part of the IFRS literature.

For the IFRS 18 decisions in particular, entities preparing for the 2027 effective date should review these clarifications now as part of their IFRS 18 implementation projects, especially if they have complex intragroup financing structures, derivative portfolios or are assessing their main business activity classification.

The full Compilation is available on the IFRS Foundation website in the Supporting Materials for IFRS Accounting Standards section.