IASB Update October 2026

Work plan overview

IASB work plan update (Agenda Paper 8)

The IASB met on 28 October 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

Amortised Cost Measurement (Agenda Paper 11)

The IASB met on 27 October 2026 to discuss possible approaches for measuring financial liabilities arising from contingent settlement provisions.

The IASB tentatively decided to propose that a financial liability arising from contingent settlement provisions be measured at an amount that is not less than the transaction price—that is, the fair value of the consideration received for the financial instrument as a whole—both on initial recognition and subsequently.

All 13 IASB members agreed with this decision.  

Next step

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

Intangible Assets (Agenda Paper 17)

The IASB met on 27 October 2026 to discuss:

• potential options to change some aspects of the recognition requirements in IAS 38 Intangible Assets that were considered in the agile software development test case;
• feedback from the IASB’s consultative groups on how findings from the workstream on user information needs might affect the project direction; and
• an updated review of academic literature and other research relevant to the topics being explored in the project.

The IASB was not asked to make any decisions.  

Next step

The IASB will decide whether any changes to the project direction are necessary.

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

The IASB met on 28 October 2026 to discuss:

• potential requirements on the disaggregation of specific cash flow information, in particular:
  • disclosure of the components of total cash outflows by a lessee; and
  • specified line items that an entity would be required to disclose in the notes or consider presenting in the statement of cash flows; and
• potential requirements to improve consistent application of the definition of cash equivalents.

Disaggregation of specific cash flow information (Agenda Paper 20A)

The IASB tentatively decided to propose amending paragraph 53(g) of IFRS 16 Leases to require lessees to disclose:

1. the total cash outflow during the period for payments made by a lessee to a lessor relating to the right to use an underlying asset.
2. the amounts of those payments:
   1. classified as operating activities in the statement of cash flows.
   2. included in each related line item presented in the statement of cash flows as investing or financing activities.
      
      Twelve of 13 IASB members agreed with these decisions.
       
3. a description of the types of the payments included in (b)(i).
   
   Eleven of 13 IASB members agreed with this decision.

The IASB tentatively decided not to propose amending paragraph 53(g) to specifically require lessees to disclose the amounts of the cash flows for lease payments included in the measurement of the right-of-use asset in accordance with paragraph 24(b) of IFRS 16.

Twelve of 13 IASB members agreed with this decision.

The IASB tentatively decided not to develop specific requirements for an entity to disclose disaggregated information about cash flows from:

1. derivatives;
2. government grants; or
3. dividends received from associates and joint ventures.

All 13 IASB members agreed with this decision.

Improving consistent application of the definition of cash equivalents (Agenda Paper 20B)

The IASB tentatively decided, subject to drafting changes, to propose amending paragraph 7 of IAS 7 Statement of Cash Flows to state that:

1. an investment normally qualifies as a cash equivalent only if an entity has a right to obtain the cash flow from the investment within three months of the date of acquisition; and
2. the entity considers all relevant contractual terms and conditions of the investment in assessing whether that condition is met.

Eleven of 13 IASB members agreed with this decision.

Some IASB members asked the staff to make clear—in finalising the drafting of the proposed amendments to paragraph 7 of IAS 7—that this decision does not change the requirement for an investment to meet all aspects of the definition of a cash equivalent to qualify as one.  

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

Consistent application activities

The IASB met on 28 October 2026 to consider matters discussed at the meeting of the IFRS Interpretations Committee (Committee) in September 2026. The IASB:

• considered an agenda decision finalised by the Committee (Agenda Paper 12A); and
• received an update on other matters discussed at that meeting (Agenda Paper 12B).
  

Reassessment of Control (IFRS 10) (Agenda Paper 12A)

The IASB was asked whether it objected to the Agenda Decision Reassessment of Control (IFRS 10 Consolidated Financial Statements).

No IASB member objected to the Agenda Decision.  

Next step

The Agenda Decision will be published in October 2026 in an addendum to IFRIC Update September 2026.

IFRIC Update September 2026 (Agenda Paper 12B)

The IASB received an update on the Committee’s September 2026 meeting. Details of this meeting were published in IFRIC Update September 2026.

IFRS for SMEs Accounting Standard (Agenda Paper 30)

The IASB met on 28 October 2026 to discuss:

• feedback on the Exposure Draft Consolidation Exception and potential additional disclosure requirements (Agenda Papers 30A–30B); and
• the due process steps to issue an amendment to the IFRS for SMEs Accounting Standard based on the proposals in the Exposure Draft (Agenda Paper 30C).

Disclosure requirements and summary of feedback on the Exposure Draft (Agenda Papers 30A–30B)

The IASB discussed its proposal to introduce a consolidation exception for an entity applying the IFRS for SMEs Accounting Standard whose ultimate or intermediate parent prepares financial statements in which the investment in the entity is measured at fair value through profit or loss in accordance with IFRS 10 Consolidated Financial Statements.

The IASB also discussed a summary of the feedback on the Exposure Draft presented to members of the SME Implementation Group (SMEIG) and their comments.

The IASB tentatively decided to proceed with the proposals in the Exposure Draft.

Twelve of 13 IASB members agreed with this decision.

The IASB confirmed that the amendment will be effective for periods beginning on or after 1 January 2027, with early adoption permitted for entities that adopt early the third edition of the IFRS for SMEs Accounting Standard.

The IASB also tentatively decided:

1. to add requirements for an entity to disclose its use of the exception and the name and principal place of business (and country of incorporation, if different) of the parent in whose financial statements the entity is measured at fair value.
   
   All 13 IASB members agreed with this decision.
   
   
2. not to add a requirement that the parent’s financial statements be ‘publicly available’.
   
   All 13 IASB members agreed with this decision.
   
   
3. not to add a requirement for an entity using the exception to obtain approval from its owners.
   
   All 13 IASB members agreed with this decision.
   
   
4. not to add requirements for an entity to disclose where the parent’s financial statements can be obtained or a list of its subsidiaries.
   
   Nine of 13 IASB members agreed with this decision.

Due process (Agenda Paper 30C)

The IASB decided not to re-expose the proposals in 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 amendment.

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

Next step

The IASB expects to issue the amendment to the IFRS for SMEs Accounting Standard by the end of 2026.