IASB Update June 2025

Work plan overview

IASB work plan update (Agenda Paper 8)

The IASB met on 18 June 2025 to receive an update on its work plan. 

The IASB was not asked to make any decisions.

Next step

The IASB expects to receive another update on its work plan in the next three to four months.

Research and standard-setting

Financial Instruments with Characteristics of Equity (Agenda Paper 5)

The IASB met on 17 June 2025 to discuss possible changes to the presentation and disclosure requirements proposed in the Exposure Draft Financial Instruments with Characteristics of Equity in response to stakeholder feedback, and to decide on:

• the proposed amendments to the presentation requirements for equity instruments in IFRS 18 Presentation and Disclosure in Financial Statements (Agenda Paper 5A);
• the proposed amendments to the disclosure requirements in IFRS 7 Financial Instruments: Disclosures (Agenda Paper 5B);
• the proposed amendments to the disclosure requirements for eligible subsidiaries in IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 5C); and
• the timing for issuing these proposed amendments (Agenda Paper 5D).

Proposed amendments—Presentation of equity instruments (Agenda Paper 5A)

In relation to IFRS 18, the IASB tentatively decided: 

1. to require an entity to present separately, in the statement of profit or loss, the profit or loss attributable to owners of the parent, disaggregated between:
   1. ordinary shareholders;
   2. participating rights holders; and
   3. non-participating rights holders.
2. to require an entity to categorise equity instruments based on the instrument holders’ contractual rights to profit or loss participation as at the reporting date. Therefore, if an equity instrument has both participating and non-participating rights, the entity would present the amounts for profit or loss participation in the line items for both participating and non-participating rights holders in the attribution section of the statement of profit or loss.
3. to specify that the term ‘ordinary share’ has the same meaning as that used in paragraph 5 of IAS 33 Earnings per Share and the Glossary to the IFRS Accounting Standards—that is, an ordinary share is ‘an equity instrument that is subordinate to all other classes of equity instruments’.
4. to define a ‘participating right’ as ‘the right to participate in profit or loss with ordinary shares, with the amount varying based on the entity’s profit or loss for the period’.
5. to define a ‘non-participating right’ as ‘the right to contractually specified amounts (for example, fixed dividends or coupons) before the determination of the profit or loss that is allocated to ordinary shareholders and participating rights holders’.

The IASB tentatively decided to withdraw the proposed presentation requirements related to the statement of financial position and the statement of changes in equity as set out in the Exposure Draft, and instead: 

1. to add requirements to IFRS 7 for an entity to disclose:
   1. information that enables users of financial statements to understand how the entity’s equity instruments relate to the attribution of profit or loss in the statement of profit or loss and the amount of dividends recognised as distributions on these instruments during the reporting period; and
   2. terms and conditions affecting the nature, amount, timing and uncertainty of cash flows of equity instruments with participating rights (those without debt-like features); and
2. to add a requirement to IFRS 18 for an entity to disclose a reconciliation of cumulative undeclared dividends for equity instruments with non-participating rights, showing separately the amounts allocated for the reporting period and any amounts declared during the reporting period.

All 14 IASB members agreed with these decisions.

Proposed amendments—Disclosures (Agenda Paper 5B)

The IASB tentatively decided to retain the proposed disclosure requirements related to the objective, scope and general principles as set out in the Exposure Draft, subject to:

1. including ‘puttable instruments and obligations arising on liquidation’—classified as equity instruments in accordance with paragraphs 16A–16D of IAS 32 Financial Instruments: Presentation—in the scope of the disclosure requirements in IFRS 7 related to the nature of claims as at the reporting date and the terms and conditions;
2. allowing cross-referencing by including the references to the proposed disclosure requirements in paragraph B6 of IFRS 7; and
3. providing application guidance on how to group financial instruments by class.

The IASB tentatively decided to retain the proposed disclosure requirements related to the nature of claims against an entity as set out in the Exposure Draft, subject to:

1. requiring that the disclosure be based on the nature of the claims at the reporting date instead of on liquidation; and 
2. clarifying that the disclosure requirement would apply to:
   1. non-derivative financial liabilities within the scope of the liquidity risk disclosures required by IFRS 7; and
   2. non-derivative equity instruments issued by the entity.

The IASB tentatively decided to retain the proposed disclosure requirements related to terms and conditions as set out in the Exposure Draft, subject to:

1. not requiring an entity to disclose the amounts allocated on initial recognition to the liability and equity components of compound financial instruments;
2. including the requirement to disclose the terms and conditions of compound financial instruments (where relevant) within the requirements in IFRS 7 to disclose terms and conditions of other financial instruments; 
3. excluding some financial liabilities with equity-like characteristics from the scope of the requirement to disclose the terms and conditions of financial instruments—for example, those with only subordination features and those that will be settled by delivering its own equity instruments; and
4. combining the requirements to disclose the terms and conditions about an instrument’s priority on liquidation with the requirements related to the nature of claims against an entity, and limiting the disclosure requirements to:
   1. the terms and conditions of financial instruments that could lead to a change in their nature; and
   2. a description of any intra-group arrangements, such as guarantees, that might affect the nature of financial instruments.

The IASB tentatively decided to retain the proposed disclosure requirements related to maximum dilution of ordinary shares as set out in the Exposure Draft, subject to:

1. clarifying that off-balance-sheet commitments that could result in dilution are included in the scope of the requirements. 
2. adding a requirement that an entity disclose the fact that the number of shares in share buy-back arrangements is unknown, if the maximum spend amount is capped.
3. adding examples of the terms and conditions an entity could disclose to enable users of financial statements to understand the maximum dilution of ordinary shares and the likelihood of maximum dilution occurring. Such examples include the exercise prices, information about whether instruments are anti-dilutive, the par value of convertible instruments, conversion ratios and descriptions of any contingent events that could affect the conversion ratios.

All 14 IASB members agreed with these decisions.

Proposed amendments—Disclosures for eligible subsidiaries (Agenda Paper 5C)

The IASB tentatively decided to retain the proposed disclosure requirements for eligible subsidiaries related to the nature of claims against a subsidiary and the terms and conditions as set out in the Exposure Draft, subject to:

1. reflecting the related changes to the proposed disclosure requirements set out in Agenda Paper 5B; and
2. clarifying that compound financial instruments are within the scope of the proposed disclosure requirements related to terms and conditions (where relevant).

The IASB tentatively decided to add disclosure requirements to IFRS 19 related to the presentation of equity instruments in accordance with Agenda Paper 5A. An eligible subsidiary would be required to disclose:

1. information to enable users of financial statements to understand how the subsidiary’s equity instruments relate to the attribution of profit or loss to different types of equity holders in the statement of profit or loss and the amount of dividends recognised as distributions on these instruments during the reporting period;
2. information about terms and conditions affecting the nature, amount, timing and uncertainty of cash flows of equity instruments with participating rights (those without debt-like features); and
3. a reconciliation of cumulative undeclared amounts for equity instruments with non-participating rights, showing separately the amounts allocated for the reporting period and any amounts declared during the reporting period. 

All 14 IASB members agreed with these decisions.

Timing of issuing the proposed amendments related to presentation and disclosures (Agenda Paper 5D)

The IASB tentatively decided not to expedite the issuance of the amendments related to presentation and disclosure set out in Agenda Papers 5A–5B ahead of those related to classification and other disclosures.

All 14 IASB members agreed with this decision. 

Next step

The IASB will begin redeliberations on the classification topics in the Exposure Draft.

Amortised Cost Measurement (Agenda Paper 11)

The IASB met on 16 June 2025:

• to discuss feedback from stakeholders about the causes of application issues in the scope of the project.
  
  The IASB was not asked to make any decisions on this matter.


• to consider the conditions set out in the Due Process Handbook for adding a project to the standard-setting work plan and determine whether those conditions have been met. The IASB decided to move the project from the research programme to the standard-setting work plan.
  
  All 14 IASB members agreed with this decision.

Next step

The IASB will discuss potential solutions for the application issues in the scope of this project.

Equity Method (Agenda Paper 13)

The IASB met on 17 June 2025 to plan the next stage of the Equity Method project, considering the feedback on the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

The IASB decided:

• to keep the project’s objectives unchanged;
• to consider adding application questions to the project’s scope only if they can be resolved in a timely manner and would not result in re-exposure of the proposals in the Exposure Draft—that is, to use a high hurdle when considering adding application questions to the project’s scope; and
• to proceed with redeliberating the proposals in the Exposure Draft.

All 14 IASB members agreed with these decisions.

The IASB also decided not to describe a project on a fundamental review of the equity method in the request for information on the IASB’s Fourth Agenda Consultation.

All 14 IASB members agreed with this decision.

Next step

The IASB will redeliberate the proposals in the Exposure Draft.

Intangible Assets (Agenda Paper 17)

The IASB met on 18 June 2025 to discuss the project plan for the next twelve months.

The IASB was not asked to make any decisions.

Next step

The IASB will begin the initial streams of work.

Business Combinations—Disclosures, Goodwill and Impairment (Agenda Paper 18)

The IASB met on 17 June 2025 to discuss the proposed exemption from some of the disclosure requirements in its Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment. The IASB considered the situations to which that exemption would apply and how the exemption would be applied. 

The IASB was not asked to make any decisions.

Next step

The IASB will continue redeliberating the proposals in the Exposure Draft.

Maintenance and consistent application

Translation to a Hyperinflationary Presentation Currency (Agenda Paper 12)

The IASB met on 17 June 2025 to discuss stakeholder feedback on its Exposure Draft Translation to a Hyperinflationary Presentation Currency. The discussion covered:

• disclosure requirements for a subsidiary that applies IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 12A);
• transition requirements for implementing the amendments (Agenda Paper 12A); and
• the effective date and the due process steps to start balloting the amendments (Agenda Paper 12B).

Disclosure for a subsidiary that applies IFRS 19 and transition requirements (Agenda Paper 12A)

Disclosure for a subsidiary that applies IFRS 19

The IASB tentatively decided:

1. to require a subsidiary that applies IFRS 19 and the proposed translation method to disclose:
   1. the fact that all amounts in its financial statements or the results and financial position of its foreign operations have been translated at the closing rate at the date of the most recent statement of financial position; and
   2. the fact that its presentation currency has ceased to be the currency of a hyperinflationary economy, if applicable.
2. following the IASB’s tentative decision at its May 2025 meeting to introduce an exception to the proposed translation method for some entities, to require a subsidiary that applies IFRS 19 and the exception to label the comparative summarised financial information of the foreign operations to show that the subsidiary prepared the information by applying the same change in the general price index as it applied to other corresponding figures.

All 14 IASB members agreed with these decisions.

The IASB also tentatively decided to require a subsidiary that applies IFRS 19 to disclose summarised financial information about any foreign operations to which the subsidiary applied the proposed translation method.

Thirteen of 14 IASB members agreed with this decision.

Transition requirements

The IASB tentatively decided:

1. to require an entity to apply the amendments retrospectively in accordance with IAS 8 Basis of Preparation of Financial Statements unless the entity is in the scope of the exception to the proposed translation method the IASB introduced at its May 2025 meeting.
2. to require an entity in the scope of the exception described in (a):
   1. to restate the comparative information of its foreign operation with the same change in the general price index the entity applies to all other corresponding figures in accordance with paragraph 34 of IAS 29 Financial Reporting in Hyperinflationary Economies, instead of applying the proposed translation method retrospectively to reporting periods before the effective date of the amendments; and
   2. to label the comparative summarised financial information of the foreign operation prepared in accordance with (i) to show that the entity prepared the information using the same change in the general price index as it used for other corresponding figures.
3. not to require an entity to disclose the information that would otherwise be required by paragraph 28(f) of IAS 8 (or by paragraph 178(f) of IFRS 19).

All 14 IASB members agreed with these decisions.

The IASB also tentatively decided not to introduce an exemption for first-time adopters (as defined in IFRS 1 First-time Adoption of International Financial Reporting Standards) from applying the amendments retrospectively.

All 14 IASB members agreed with this decision.

Effective date and due process requirement (Agenda Paper 12B)

The IASB tentatively decided:

1. to require an entity to apply the amendments for annual reporting periods beginning on or after 1 January 2027;
2. to permit early application; and
3. to issue the amendments without re-exposure.

All 14 IASB members agreed with these decisions.

Next step

The IASB will ballot the amendments with a view to issuing them in the fourth quarter of 2025.

Climate-related and Other Uncertainties in the Financial Statements (Agenda Paper 14)

The IASB met on 16 June 2025 to discuss the proposals set out in the Exposure Draft Climate-related and Other Uncertainties in the Financial Statements. The IASB discussed:

• the project direction (Agenda Paper 14A); and
• the due process steps taken to begin the process for balloting the illustrative examples (Agenda Paper 14B).

Project direction (Agenda Paper 14A)

The IASB discussed its proposals to issue illustrative examples to help improve the reporting of the effects of climate-related and other uncertainties in the financial statements.

The IASB tentatively decided:

1. to proceed with issuing examples 1–4 and 6–8, with changes to address specific concerns raised by respondents;
2. not to proceed with issuing Example 5;
3. to issue examples 1–4 and 6–8 as illustrative examples accompanying IFRS Accounting Standards; and
4. to retain the project’s objective, which covers climate-related and other uncertainties, and develop no additional examples.

All 14 IASB members agreed with decisions (a) and (c)–(d). Eleven of 14 IASB members agreed with decision (b). 

The IASB tentatively decided to explain that:

1. the illustrative examples would not have an effective date; but
2. the IASB expects an entity to be entitled to sufficient time to implement any changes to the information disclosed in its financial statements as a result of the issuance of the illustrative examples.

Twelve of 14 IASB members agreed with this decision.

The IASB tentatively decided to discuss additional work to facilitate connected financial reporting during its decision-making meeting on its Fourth Agenda Consultation.

All 14 IASB members agreed with this decision.

Due process and permission to begin the balloting process (Agenda Paper 14B)

The IASB discussed due process steps and the request for permission to begin the balloting process for the illustrative examples. The IASB decided to issue the illustrative examples without re-exposure.

All 14 IASB members agreed with this decision.

Two IASB members indicated that they might dissent from issuing the illustrative examples.

All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the illustrative examples.

Next step

The IASB expects to issue the illustrative examples in October 2025.

Provisions—Targeted Improvements (Agenda Paper 22)

The IASB met on 18 June 2025 to discuss a summary of the feedback on its Exposure Draft Provisions—Targeted Improvements. The Exposure Draft proposes targeted amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

The IASB was not asked to make any decisions.

Next step

The IASB will discuss a plan for the next stage of the project.