Documents issued during the quarter ended 31 March 2026

During the quarter ended 31 March 2026, the IASB published an Exposure Draft proposing targeted amendments to clarify which investments a company is eligible to measure using the fair value option in IAS 28 Investments in Associates and Joint Ventures. The proposed amendments are intended to reduce diversity in practice and provide timely clarity ahead of the effective date of IFRS 18. 

IASB Meetings

The following is a summarized update of key matters arising from the discussions and decisions taken by the IASB at its meetings on the following dates: 

• 27-28 January 2026
• 24-25 February 2026
• 24-25 March 2026

The full updates, as published by the IASB, can be found at the IASB Updates archive here.
 

Research and standard setting

Intangible Assets (Agenda Paper 17)

In January 2026, the IASB discussed the selection of test cases for work on potential changes to aspects of the definition and recognition of intangible assets and identified principles and topics for further exploration. No decisions were made.

Statement of Cash Flows and Related Matters (Agenda Paper 20)

At its January 2026 meeting, the IASB decided to move the Statement of Cash Flows and Related Matters project from the research programme to its standard-setting work plan. The Board also decided not to establish a consultative group for the project and will continue deliberating issues within the scope of the project.

Financial Instruments with Characteristics of Equity (Agenda Paper 5)

In February 2026, the IASB continued redeliberating the Exposure Draft and tentatively decided to proceed with the proposed requirements on applying the fixed-for-fixed condition, subject to minor drafting improvements and targeted refinements. These refinements clarify, among other matters, the meaning of a fixed amount of consideration, the treatment of adjustments that compensate future holders, adjustments that are solely a function of time, and the effect of multiple adjustments on classification.

Amortised Cost Measurement (Agenda Paper 11)

In February 2026, the IASB tentatively decided to clarify that a modification of a financial asset or financial liability is a change in contractual terms that changes the nature, timing, amounts or uncertainty of contractual cash flows. It also tentatively decided to clarify that a substantial modification of a financial asset is accounted for as derecognition of the original financial asset and recognition of a new financial asset, and that entities should apply a principles-based approach when assessing whether a modification results in derecognition.

Equity Method (Agenda Paper 13)

In February 2026, the IASB tentatively decided to retain and refine impairment indicators for investments in associates, including focusing on carrying amount rather than cost and requiring consideration of observable price information, including quoted market price at the reporting date for publicly traded associates. It also decided not to move the impairment requirements to IAS 36 and not to reconsider two application issues relating to reversal of impairment losses.

In March 2026, the IASB tentatively decided to retain the proposed approach for accounting for other changes in ownership interest while significant influence is retained, without exemption for transactions to which an investor is not a party. The Board also decided to provide optional relief from fair value measurement of an additional share of an associate’s identifiable net assets when purchasing an additional ownership interest, if using an alternative measure would not result in a material difference in the financial statements.

Post-implementation Review of IFRS 16 Leases (Agenda Paper 7)

Across the January and February 2026 meetings, the IASB reviewed feedback on the Request for Information and planned the next phase of the review, without making decisions. In March 2026, the Board tentatively decided to add a research project to explore whether the higher-than-expected ongoing costs for lessees can be reduced without significantly harming the usefulness of lease-related information.

The work will explore possible simplifications relating to remeasurements of lease liabilities and discount rates. At the same time, the Board tentatively decided not to take action on a number of other areas, including recognition exemptions, disclosure requirements, intragroup leases, lease term and discount rate guidance.

Post-implementation Review of IFRS 9 – Hedge Accounting (Agenda Paper 26)

In February 2026, the IASB discussed the objective, activities and timeline for the first phase of the post-implementation review. The Board plans to engage with consultative groups and other stakeholders to inform a request for information, which it expects to publish in the second half of 2026.

Maintenance and consistent application

Consistent application activities

In January 2026, the IASB considered recommendations arising from the IFRS Interpretations Committee’s November 2025 meeting.

Regarding updates to agenda decisions for IFRS 18 the Board:

(i)    agreed to withdraw the agenda decision on income and expenses arising on financial instruments with a negative yield,

(ii)    deferred any decision on withdrawing the agenda decision on supply chain financing arrangements—reverse factoring pending targeted outreach,

(iii)    did not object to six updated agenda decisions, and did not object to the agenda decisions on Embedded

Prepayment Option and Determining and Accounting for Transaction Costs.

The Board did not object to two other decisions relating to IFRS 9:

(i)    embedded prepayment option,

(ii)    determining and accounting for transaction costs.

Provisions – Targeted Improvements (Agenda Paper 22)

In February 2026, the IASB tentatively decided to supplement the proposed past-event condition for levies with application requirements identifying the economic benefit or activity the government is seeking to levy, supported by a constraining presumption linked to the levy legislation, without the Board deciding yet whether the presumption should be rebuttable in some circumstances.

The Board also tentatively decided to retain an explicit transfer condition in IAS 37 and to clarify the distinction between obligations to transfer and obligations to exchange economic resources, including the implications for levies and the related implementation guidance.

IFRS for SMEs Accounting Standard (Agenda Paper 30)

In March 2026, the IASB tentatively decided to add a narrow standard-setting project to introduce a consolidation exemption for intermediate parents with an investment entity parent (or ultimate parent) that do not produce consolidated financial statements. The Board also decided to start the project immediately by publishing an exposure draft, with a proposed effective date of periods beginning on or after 1 January 2027 and early adoption permitted for entities that early adopt the third edition of the IFRS for SMEs Accounting Standard.

IFRS Interpretations Committee (IFRIC) Latest decisions summary

The following is a summary of key matters arising from the discussions and decisions taken by the IFRIC at its meeting on 17-18 March 2026. The March IFRIC Update is available on the IFRS Foundation website here.

Committee’s tentative agenda decisions

Reassessment of Control (IFRS 10 Consolidated Financial Statements) – Agenda Paper 5

The Committee received a request asking whether an entity reassesses whether it retains control of an investee when the investee’s governing document is amended. Based on the feedback gathered to date, the Committee observed that, in the fact pattern described, entities reassess control applying paragraph 8 of IFRS 10.

The Committee tentatively concluded that the matter does not have widespread effect and therefore tentatively decided not to add a standard-setting project to the work plan. Comments are open until 29 May 2026.

Agenda decisions for the IASB's consideration

The Committee concluded its discussions on two agenda decisions that had first been published for comment in September 2025: 

(i)    classification of a foreign exchange difference from an intragroup monetary liability (or asset) under IFRS 18; and 

(ii)    economic benefits from use of a battery under an offtake arrangement under IFRS 16. 
These agenda decisions will be considered by the IASB and, if there is no objection, will be published in an addendum to the March 2026 IFRIC Update.

The Committee also concluded its discussions on five agenda decisions that had first been published for comment in November 2025, namely: 

(i)    one under IAS 1 fair  presentation and compliance with IFRS Accounting Standards;

(ii)    and four under IFRS 18:

a.    assessment of a specified main business activity in a parent’s separate financial statements; 

b.    scope of the requirement to disclose expenses by nature; 

c.    classification of gains and losses on a derivative managing a foreign currency exposure; and 

d.    presentation of taxes or other charges that are not tax expense or tax income applying IAS 12. 

These agenda decisions will likewise be considered by the IASB.

In addition, the Committee decided to finalise the proposed updates to two agenda decisions for IFRS 18: Presentation of payments on non-income taxes and Classification of tonnage taxes.

Other matters 

The Committee discussed a request on control assessment for a single-investor fund (IFRS 10) and will continue its discussions at a future meeting.

Committee members also provided views on the implementation and application of the hedge accounting requirements in IFRS 9 and the related disclosure requirements in IFRS 7, and the matters that IASB should investigate in the first phase of the post-implementation review of those requirements.