IASB Update October 2025

Research and standard-setting

Rate-regulated Activities (Agenda Paper 9)

The IASB met on 30 October 2025 to discuss sweep issues identified in drafting the prospective IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities (prospective Accounting Standard).

Inflation adjustments to the regulatory capital base (Agenda Paper 9A)

The IASB tentatively decided that the prospective Accounting Standard would:

1. require that an entity recognise an inflation adjustment to its regulatory capital base in profit or loss as and when that adjustment is included in regulatory depreciation. All 12 IASB members agreed with this decision.
2. not specify that the inflation adjustment is either a difference in timing or a measurement difference. All 12 IASB members agreed with this decision.
3. not include disclosure requirements related to an inflation adjustment to an entity’s regulatory capital base. Eleven of 12 IASB members agreed with this decision.

Recognition conditions (Agenda Paper 9B)

The IASB tentatively decided that the prospective Accounting Standard would:

1. specify that the defining feature of a direct relationship between an entity’s regulatory capital base and an underlying item is the entity’s ability to track, by amount and reporting period, how the amounts arising from the underlying item are compensated or charged for by regulatory depreciation;
2. specify that the indicators of a direct relationship between an entity’s regulatory capital base and its depreciable or amortisable assets include:
   1. items (or classes) in the regulatory capital base being sufficiently similar to items (or asset classes) determined in accordance with IFRS Accounting Standards, for the entity to be able to track differences between these items or between these classes; and
   2. the regulator establishing an amount of regulatory depreciation based on the depreciation or amortisation expense determined in accordance with IFRS Accounting Standards;
3. permit an entity to presume there is no direct relationship between its regulatory capital base and its depreciable or amortisable assets if the indicators in (b) are not present;
4. require an entity to determine whether its regulatory capital base and its depreciable or amortisable assets have a direct relationship at the level at which the entity can track how amounts are compensated or charged for by regulatory depreciation, with the upper limit being the asset class level determined in accordance with IFRS Accounting Standards; and
5. require an entity:
   1. to reassess whether there is a direct relationship between the regulatory capital base and an underlying item when there is a change in facts or circumstances or new information (for example, a change in the regulatory agreement) that might alter that relationship; and
   2. to disclose any change to or from such a direct relationship, and the reason for the change.

All 12 IASB members agreed with these decisions.

Next step

The IASB will continue the balloting process for the prospective Accounting Standard.

Equity Method (Agenda Paper 13)

The IASB met on 29 October 2025 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x).

Acquisition-related costs (Agenda Paper 13A)

The IASB tentatively decided to require acquisition-related costs incurred by an investor or joint venturer:

1. to obtain significant influence or joint control—to be recognised as an expense in profit or loss in the period in which the costs are incurred.
2. to purchase an additional ownership interest in an associate or joint venture—to be recognised as an expense in profit or loss in the period in which the costs are incurred.

Ten of 12 IASB members agreed with these decisions.

The IASB also tentatively decided to require an investor or joint venturer to apply the requirements in (a)–(b) prospectively from the transition date.

All 12 IASB members agreed with this decision.

Transactions with associates (Agenda Papers 13B–13C)

In considering the feedback on the proposal to recognise in full gains or losses resulting from all transactions with associates and joint ventures, the IASB decided to undertake further work:

1. to understand the concerns of respondents who said the proposals could increase opportunities for earnings management; and
2. to understand whether enhancing disclosures or adding guidance might resolve these concerns.

All 12 IASB members agreed with this decision.

Next step

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

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

The IASB met on 30 October 2025 to continue deliberating feedback on proposals in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment related to performance information and expected synergy information.
 
The IASB was not asked to make any decisions.

Next step

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

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

The IASB met on 29 October 2025 to discuss how it could improve the reporting of information about non-cash transactions and other non-cash changes in specific assets and liabilities.

The IASB tentatively decided to develop potential requirements:

1. that would specify the content and location of information an entity discloses about non-cash transactions that are within the scope of paragraphs 43–44 of IAS 7 Statement of Cash Flows;
2. that would require an entity to disclose information about specified types of non-cash changes other than the non-cash transactions in (a) for assets and liabilities that make up the components of working capital; and
3. that would require an entity to disclose cash receipts, cash payments and related line items in the statement of cash flows as part of the reconciliation of changes in liabilities arising from financing activities.

All 12 IASB members agreed with this decision.

Next step

The IASB will continue to assess ways to improve financial reporting in relation to each of the topics in the project plan.

Maintenance and consistent application

Consistent application activities

The IASB met on 29 October 2025:

• to consider two consistent application matters (Agenda Papers 12A–12B); and
• to receive updates on the September 2025 Committee meeting (Agenda Paper 12C).

Fair Value Option for Investments in Associates and Joint Ventures Held by Specified Entities (Agenda Paper 12A)

The IASB discussed whether to add a maintenance project to its work plan to explore narrow-scope amendments to the scope of paragraphs 18–19 of IAS 28 Investments in Associates and Joint Ventures.

The IASB decided to add the project to its work plan.

All 12 IASB members agreed with this decision.

Next step

The IASB will discuss a tentative project plan and possible ways to amend paragraphs 18–19 of IAS 28.

Presentation of Non-income Taxes (Agenda Paper 12B)

The IASB discussed whether to ask the IFRS Interpretations Committee (Committee) to consider a consistent application matter related to the application of IFRS 18 Presentation and Disclosure in Financial Statements. The matter concerns whether an entity applying IFRS 18 is permitted to present, in the ‘income tax expense or income’ line item of the statement of profit or loss, taxes or other charges that are not income taxes within the scope of IAS 12 Income Taxes.

The IASB decided to ask the Committee to consider this matter.

Eleven of 12 IASB members agreed with this decision.

Next step

The Committee will consider this matter.

IFRIC Update September 2025 (Agenda Paper 12C)

The IASB received an update on the September 2025 Committee meeting. Details of this meeting were published in IFRIC Update September 2025.

The IASB was not asked to make any decisions.

Provisions—Targeted Improvements (Agenda Paper 22)

The IASB met on 29 October 2025 to continue redeliberating proposals in the Exposure Draft Provisions—Targeted Improvements. The IASB discussed ideas for possible application requirements for levies.

The IASB was not asked to make any decisions.

Next step

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