IASB and IASB–FASB Update June 2026

Work plan overview

IASB work plan update (Agenda Paper 8)

The IASB met on 24 June 2026 to receive an update on its work plan. The IASB was not asked to make any decisions.

Next step

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

Research and standard-setting

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

The IASB met on 23 June 2026 to discuss how to respond to stakeholder feedback on the Request for Information Post-implementation Review of IFRS 16 Leases (RFI). The IASB discussed feedback on:

• the effects of applying IFRS 16 with other IFRS Accounting Standards; and
• other matters relevant to assessing the effects of IFRS 16.

Effects of applying IFRS 16 with other IFRS Accounting Standards (Agenda Paper 7A)

The IASB tentatively decided:

1. to add to its project pipeline a narrow-scope project to clarify how a lessee applies the requirements in IFRS 16 and IFRS 9 Financial Instruments to account for a rent concession (in which the only change to the lease contract is the lessor’s forgiveness of lease payments due from the lessee under that contract).
   
   Twelve of 13 IASB members agreed with this decision.
   
   
2. to undertake this narrow-scope project together with the research project on cost-reduction measures that the IASB tentatively decided in March 2026 to undertake in response to stakeholders’ feedback on the RFI.
   
   Twelve of 13 IASB members agreed with this decision.

Stakeholders commented on the effects of applying the requirements in IFRS 16 and IFRS 10 Consolidated Financial Statements to account for the sale and leaseback of an asset in a single-asset entity. In response to stakeholder feedback, the IASB tentatively decided:

1. to consider the priority of this matter together with other corporate wrapper matters in its next agenda consultation; and
2. to remove the matter Sale and Leaseback of an Asset in a Single-asset Entity from the maintenance project pipeline.

All 13 IASB members agreed with this decision.

The IASB tentatively decided to take no action in response to stakeholder feedback on the effects of applying IFRS 16 with:

1. IFRS 15 Revenue from Contracts with Customers to assess whether the transfer of an asset in a sale and leaseback transaction is a sale.
   
   All 13 IASB members agreed with this decision.
   
   
2. IFRS 15 to recognise a gain or loss in a sale and leaseback transaction.
   
   Seven of 13 IASB members agreed with this decision.
   
   
3. IAS 38 Intangible Assets to identify leases.
   
   All 13 IASB members agreed with this decision.
   
   
4. other IFRS Accounting Standards raised by only a few stakeholders in response to Question 6.4 in the RFI.
   
   All 13 IASB members agreed with this decision.

Other matters relevant to the assessment of the effects of IFRS 16 (Agenda Paper 7B)

The IASB tentatively decided to take no action in response to stakeholder feedback on the effects of:

1. applying the requirements in IFRS 16 for lessors;
2. applying the requirements in IFRS 16 for identifying a lease; and
3. other matters raised by only a few stakeholders in response to Question 6.4 in the RFI.

All 13 IASB members agreed with these decisions.

Next steps

The IASB will deliberate the remaining feedback on the RFI and decide whether to take any action in response to that feedback.

Amortised Cost Measurement (Agenda Paper 11)

The IASB met on 23 June 2026 to discuss:

• the project plan (Agenda Paper 11); and
• the approach for determining whether a modification of a financial instrument is substantial, resulting in derecognition (Agenda Paper 11A).

Project plan (Agenda Paper 11)

The IASB received an update on the project plan. The IASB was not asked to make any decisions.

Determining whether a modification results in derecognition (Agenda Paper 11A)

The IASB discussed how it should clarify requirements in IFRS 9 Financial Instruments for determining whether a modification of a financial asset or a financial liability is substantial, resulting in derecognition.

The IASB tentatively decided to propose that:

1. an entity would determine whether a modification of a financial instrument is substantial based on a holistic analysis of the changes in the contractual cash flows. The entity would consider qualitative and quantitative factors as part of this analysis. The ‘10 per cent test’ as described in paragraph B3.3.6 of IFRS 9 could supplement the analysis but would not be the decisive factor in isolation.
2. the factors an entity would consider in determining whether a modification is substantial include, but are not limited to:
   1. a change in the currency in which principal or interest is denominated, which would suggest the modification is substantial.
   2. a change in cash flow characteristics that alters the assessment of whether the cash flows are solely payments of principal and interest for a financial asset; or whether an embedded derivative is separated from the host contract for a financial liability. Such a change would suggest the modification is substantial.
   3. a change in borrower counterparty, which would suggest the modification is substantial, unless the change is between entities under common control.
   4. the reason for the modification. A commercial renegotiation to reset the financial instrument to current market terms would suggest the modification is substantial. Conversely, a modification attributable to the borrower’s financial difficulty would suggest the modification is not substantial.
3. the relevance of a specific factor, and its weight compared to other factors, would depend on the type of financial instrument, the characteristics of the financial instrument and general economic conditions. An entity would be required to consider reasonable and supportable information that is available without undue cost or effort and that is relevant for the particular financial instrument being assessed.

Eleven of 13 IASB members agreed with this decision.

Next step

The IASB will continue deliberating issues within the scope of the project. 

Equity Method (Agenda Paper 13)

The IASB met on 24 June 2026 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

Separate financial statements (Agenda Paper 13A)

The IASB discussed the feedback related to its proposals in the Exposure Draft on applying the equity method in an entity’s separate financial statements.

The IASB tentatively decided that:

1. an investor that applies the equity method to associates or joint ventures in its separate financial statements may choose either to restrict recognition of gains or losses (except for gains or losses on transfer of businesses, which would be recognised in full) or to recognise gains and losses in full on all transactions with associates. The investor need not apply the same accounting policy to the recognition of gains and losses on transactions with associates in its consolidated and separate financial statements.
   
   All 13 IASB members agreed with this decision.
   
   
2. a parent that applies the equity method to subsidiaries in its separate financial statements may choose either to restrict the recognition of gains or losses or to recognise gains and losses in full on all transactions with subsidiaries.
   
   Seven of 13 IASB members agreed with this decision.
   

The IASB also tentatively decided to withdraw its proposals in the Exposure Draft that:

1. an entity does not remeasure its previously held interest in an investment accounted for using the equity method if it acquires control of that investment and continues applying the equity method; and
2. an entity does not remeasure a retained interest in a former subsidiary if it loses control of the subsidiary and continues applying the equity method to the retained interest.
   
   Ten of 13 IASB members agreed with this decision.

The IASB also decided not to add to the scope of the project application questions on measurement of cost, step acquisition and loss of control of an investment in a subsidiary accounted for at cost in separate financial statements.

All 13 IASB members agreed with this decision.

Proposed amendments to the disclosure requirements in IFRS 12 Disclosure of Interests in Other Entities (Agenda Paper 13B)

The IASB discussed the feedback on its proposed amendments to the disclosure requirements for associates in IFRS 12.

The IASB tentatively decided to confirm its proposals in the Exposure Draft to require an investor to disclose:

1. gains or losses from other changes in its ownership interest;
2. information about contingent consideration arrangements; and
3. a reconciliation between the opening and closing carrying amount for its associates.

The IASB also tentatively decided to confirm its proposal in the Exposure Draft to introduce a disclosure objective to disclose information that would enable users of financial statements to understand changes in the carrying amount of investment in associates.

All 13 IASB members agreed with these decisions.

The IASB tentatively decided that, if an investor applies the relief from measuring at fair value the additional share of the associate’s or joint venturer’s identifiable assets and liabilities, when purchasing an additional ownership interest and retaining significant influence, the investor discloses the use of that relief.

Nine of 13 IASB members agreed with this decision.

Proposed amendments to the disclosure requirements in IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 13C)

The IASB discussed the feedback on its proposed amendments to the disclosure requirements in IFRS 19.

The IASB tentatively decided:

1. to confirm its proposal in the Exposure Draft to amend IFRS 19 to require an eligible subsidiary to disclose information about contingent consideration arrangements; and
2. not to require an eligible subsidiary to disclose a reconciliation between the opening and closing carrying amount of its associates.

All 13 IASB members agreed with this decision.

The IASB tentatively decided that, if an eligible subsidiary applies the relief from measuring at fair value the additional share of an associate’s identifiable assets and liabilities, the eligible subsidiary is not required to disclose the use of that relief when purchasing an additional ownership interest and retaining significant influence.

Twelve of 13 IASB members agreed with this decision.

Next step

The IASB will continue to discuss the feedback on the Exposure Draft.

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

The IASB met on 23 June 2026 to discuss improving the classification and presentation of cash flows related to derivatives and government grants.

Cash flows related to derivatives

The IASB tentatively decided to propose requiring an entity to classify cash flows from a derivative used to manage identified risks (and not designated in a hedging relationship in accordance with IFRS 9 Financial Instruments):

1. in the same manner as the cash flows from the item(s) whose identified risks are being managed. This approach would align the classification with that for derivatives designated in a hedging relationship in accordance with IFRS 9.
   
   All 13 IASB members agreed with this decision.
   
   
2. as cash flows from operating activities, if classifying the cash flows as described in (a) would involve undue cost or effort.
   
   Seven of 13 IASB members agreed with this decision.

The IASB tentatively decided to propose requiring an entity to classify cash flows from a derivative not used to manage identified risks as cash flows from financing activities, if the derivative relates to a transaction that involves only the raising of finance.

Twelve of 13 IASB members agreed with this decision.

Cash flows related to government grants

The IASB tentatively decided to propose requiring an entity:

1. to classify receipts from government grants for a grant related to assets (as defined in IAS 20 Accounting for Government Grants and Disclosure of Government Assistance) as investing activities.
   
   Eleven of 13 IASB members agreed with this decision.
   
   
2. to classify receipts from government grants for a grant related to income (as defined in IAS 20—that is, a grant other than one related to assets) as operating activities.
   
   Eleven of 13 IASB members agreed with this decision.
   
   
3. to present receipts from government grants related to assets on a gross basis—that is, the entity would present cash flows received from grants related to assets and payments for the related items as separate items in the statement of cash flows.
   
   Twelve of 13 IASB members agreed with this decision.
   

Next step

The IASB will continue to consider how to improve financial reporting for each of the topics in the project plan. 

Maintenance and consistent application

Presentation of Taxes or Other Charges that Are Not Tax Expense or Tax Income Applying IAS 12 Income Taxes (IFRS 18) (Agenda Paper 12)

The IASB met on 23 June 2026 to discuss a potential amendment to IFRS 18 Presentation and Disclosure in Financial Statements. The potential amendment would permit an entity to classify, in the income taxes category of the statement of profit or loss, non-income tax charges that meet the definition of ‘covered taxes’ under the Organisation for Economic Co-operation and Development’s Pillar Two model rules.

Five IASB members indicated an intention to vote against the publication of an exposure draft proposing the potential amendment. Consequently, the IASB decided to explore alternative ways to require an entity to classify specific non-income tax charges in the income taxes category of the statement of profit or loss.

Eleven of 13 IASB members agreed with this decision.

Next step

The IASB will continue to discuss this topic.

Provisions—Targeted Improvements (Agenda Paper 22)

The IASB met on 22 June 2026 to discuss a plan for completing the project.

The IASB was not asked to make any decisions.

Next steps

The IASB will:

1. discuss feedback on aspects of the proposals it has not yet redeliberated; and
2. further test the draft application requirements for levies to seek evidence that they would have no major unintended consequences.
   

Projects discussed at the joint IASB–FASB meeting

Discussion points

The IASB held an education meeting with the Financial Accounting Standards Board (FASB) on 5 June 2026. The two boards discussed:

• business combinations and related topics;
• the post-implementation review of IFRS 16 Leases;
• the statement of cash flows;
• topics related to financial instruments;
• cryptoassets; and
• emerging issues.

The boards were not asked to make any decisions.