IASB Update March 2026

Work plan overview

IASB work plan update (Agenda Paper 8)

The IASB met on 25 March 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 24 March 2026 to discuss how to respond to stakeholder feedback on the Request for Information Post-implementation Review of IFRS 16 Leases. The IASB discussed feedback on:

• the ongoing costs for lessees of applying the measurement requirements in IFRS 16; and
• the usefulness of information resulting from lessees applying judgement.

Ongoing costs for lessees of applying the measurement requirements in IFRS 16 (Agenda Paper 7A)

The IASB tentatively decided to add a research project to its project pipeline. The project will explore whether it would be feasible to mitigate the higher-than-expected ongoing costs for lessees of applying the measurement requirements in IFRS 16 without a significant negative effect on the usefulness of lease-related financial information.

The IASB tentatively decided to explore the feasibility of reducing costs relating to:

1. remeasurements of the lease liability—for example, by:
   1. reducing the frequency of remeasurements of the lease liability; and
   2. simplifying the requirements for the reassessment of the lease liability to reflect changes in variable lease payments that are linked to an index or a rate; and
2. discount rates—for example, by requiring or permitting lessees to use:
   1. a simplified discount rate instead of the incremental borrowing rate; and
   2. an unchanged discount rate for some remeasurements of the lease liability.

All 13 IASB members agreed with these decisions.

The IASB tentatively decided not to take action in response to stakeholder feedback on costs for lessees arising from:

1. the clarity of guidance for remeasurements of the lease liability.
   Ten of 13 IASB members agreed with this decision.
   
   
2. the requirement to use the rate implicit in the lease.
   All 13 IASB members agreed with this decision.
   
   
3. the clarity of guidance for determining discount rates.
   All 13 IASB members agreed with this decision.
   
   
4. recognition exemptions.
   Eleven of 13 IASB members agreed with this decision.
   
   
5. disclosure requirements.
   All 13 IASB members agreed with this decision.
   
   
6. the clarity of guidance for portfolio application of IFRS 16.
   Twelve of 13 IASB members agreed with this decision.
   
   
7. intragroup leases.
   Twelve of 13 IASB members agreed with this decision.
   
   
8. the requirements for determining lease terms.
   Ten of 13 IASB members agreed with this decision.

Usefulness of information resulting from lessees’ application of judgement (Agenda Paper 7B)

The IASB tentatively decided not to add a research project to its project pipeline to explore making targeted improvements to requirements affecting the usefulness of information resulting from lessees applying judgement—for example, by developing specific requirements for lessees to disclose significant judgements made in determining:

1. the lease term; and
2. the discount rate.

Twelve of 13 IASB members agreed with this decision.

The IASB tentatively decided not to take action in response to other matters related to lessees’ judgement that stakeholders raised in response to Question 2 in the Request for Information. Specifically, the IASB tentatively decided:

1. not to provide additional guidance or illustrative examples for determining the lease term.
   All 13 IASB members agreed with this decision.
   
   
2. not to simplify the requirements for determining the lease term.
   Ten of 13 IASB members agreed with this decision.
   
   
3. not to develop specific requirements for lessees to disclose items of information related to the lease term.
   All 13 IASB members agreed with this decision.
   
   
4. not to provide additional guidance or illustrative examples for determining discount rates.
   Twelve of 13 IASB members agreed with this decision.
   
   
5. not to develop specific requirements for lessees to disclose items of information related to the discount rate.
   Twelve of 13 IASB members agreed with this decision.
   
   
6. not to develop specific disclosure requirements for variable lease payments.
   Twelve of 13 IASB members agreed with this decision.
   
   
7. not to provide clarifications, additional application guidance or illustrative examples to help entities determine whether some lease payments are:
   1. in-substance fixed lease payments;
   2. variable lease payments that depend on an index or a rate; or
   3. variable lease payments that do not depend on an index or a rate.
   Twelve of 13 IASB members agreed with this decision.
   
   
8. not to take action in response to other judgement-related matters raised by a few stakeholders in response to Question 2 in the Request for Information and summarised in Appendix A to Agenda Paper 7B.
   All 13 IASB members agreed with this decision.

Next steps

The IASB will deliberate other feedback on the Request for Information and decide whether to take any action in response to that feedback.

Equity Method (Agenda Paper 13)

The IASB met on 25 March 2026 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

Other changes in ownership interest (Agenda Paper 13A)

The IASB tentatively decided to retain the proposal to require an investor that retains significant influence over an associate when its ownership interest changes:

1. to apply paragraphs 30–31 of the Exposure Draft to an increase in its ownership interest, as if the investor had purchased an additional ownership interest; and
2. to apply paragraphs 32–33 of the Exposure Draft to a decrease in its ownership interest, as if the investor had disposed of an ownership interest.

Eleven of 13 IASB members agreed with this decision.

The IASB tentatively decided:

1. not to provide illustrative examples of some fact patterns to clarify how an investor would apply paragraphs 30–33 of the Exposure Draft.
   Eight of 13 IASB members agreed with this decision.
   
   
2. not to introduce a requirement for an investor to recognise its share of the expense and the corresponding adjustment to the carrying amount of the investment during the vesting period of an equity-settled share-based payment transaction.
   Twelve of 13 IASB members agreed with this decision.
   
   
3. not to provide an exemption from applying paragraphs 30–33 of the Exposure Draft for transactions to which an investor is not a party, including those that occur outside an immediate associate.
   All 13 IASB members agreed with this decision.
   
   
4. not to introduce requirements for hybrid instruments (for example, hybrid instruments that affect dividend distribution but not voting rights).
   All 13 IASB members agreed with this decision.
   
   
5. not to introduce requirements for when an investor could combine transactions.
   All 13 IASB members agreed with this decision.

Purchase of an additional ownership interest—Relief (Agenda Paper 13B)

The IASB tentatively decided:

1. to provide relief from the proposal to require an investor to measure at fair value the additional share of the associate’s identifiable assets and liabilities. The relief would permit the investor to use an alternative measure when purchasing an additional ownership interest and retaining significant influence.
2. to permit an investor to apply the relief if the investor reasonably expects that the effects of using that alternative measure would not result in a material difference in its financial statements in the current or future periods (eligibility criterion).
3. to list the factors an investor considers in assessing the eligibility criterion.
4. not to specify alternative measures to fair value that an investor is permitted to use when using the relief.
5. to permit optional use of the relief.

All 13 IASB members agreed with this decision.

Next step

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

Maintenance and consistent application

IFRS for SMEs Accounting Standard (Agenda Paper 30)

The IASB met on 25 March 2026 to discuss:

• an application issue related to paragraph 9.3 of the IFRS for SMEs Accounting Standard, about the preparation of consolidated financial statements by intermediate parents with an investment entity parent (or ultimate parent) (Agenda Paper 30A); and
• due process steps to publish an exposure draft proposing an amendment to the IFRS for SMEs Accounting Standard to address the application issue (Agenda Paper 30B).

Application question on paragraph 9.3 of the IFRS for SMEs Accounting Standard (Agenda Paper 30A)

The IASB tentatively decided:

• to add a standard-setting project to its work plan that would introduce a consolidation exemption for intermediate parents:
  • that have an investment entity parent (or ultimate parent); and
  • that do not produce consolidated financial statements; and
• to start the project immediately by publishing an exposure draft.
  

Eleven of 13 IASB members agreed with this decision.

Due process and permission to begin the balloting process (Agenda Paper 30B)

The IASB tentatively decided to propose that the amendments be effective for periods beginning on or after 1 January 2027, with early adoption permitted for entities that early adopt the third edition of the IFRS for SMEs Accounting Standard.

All 13 IASB members agreed with this decision.

The IASB tentatively decided to set a comment period of 120 days for the exposure draft.

All 13 IASB members agreed with this decision.

All 13 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 exposure draft.

One IASB member indicated an intention to dissent from the proposals in the exposure draft.

Next step

The IASB expects to publish the exposure draft in May 2026.