IASB Update May 2026

Research and standard-setting

Risk Mitigation Accounting (Agenda Paper 4)

The IASB met on 19 May 2026 to consider stakeholder requests to extend the comment period for the Exposure Draft Risk Mitigation Accounting.

The IASB decided to extend the comment letter deadline to 30 November 2026 to align it with the final submission date for the fieldwork results.

All 13 IASB members agreed with this decision.

Next step

The IASB will consider feedback on the Exposure Draft.

Rate-regulated Activities (Agenda Paper 9)

The IASB met on 18 May 2026 to receive an update on plans to support the implementation and consistent application of the prospective IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities.

Next step

The IASB expects to issue the prospective Standard in May 2026.

Equity Method (Agenda Paper 13)

The IASB met on 20 May 2026 to continue redeliberating the proposals in the Exposure Draft Equity Method of Accounting.

Presentation of the investor’s share of the associate’s profit or loss and other comprehensive income (Agenda Paper 13A)

The IASB tentatively decided to confirm the proposal in the Exposure Draft that an investor would first recognise its share of an associate’s profit or loss and then the share of the associate’s other comprehensive income, if both shares are losses and in aggregate exceed the carrying amount of the net investment in the associate.

All 13 IASB members agreed with this decision.

The IASB tentatively decided to withdraw the proposal in the Exposure Draft that an investor would continue to recognise its share of an associate’s profit or loss and its share of the associate’s other comprehensive income after the investor has reduced the net investment to nil.

Eleven of 13 IASB members agreed with this decision.

The IASB decided not to add to the scope of the project a question on whether an investor, on resuming the recognition of its share of profit after the investment has been reduced to nil, should first recognise its share of an associate’s profit or loss or its share of the associate’s other comprehensive income.

All 13 IASB members agreed with this decision.

Transactions with associates—Staff analysis of feedback (Agenda Paper 13B)

The IASB met to discuss an analysis of feedback on the proposal that an investor would recognise gains and losses in full from transactions with associates.

The IASB was not asked to make any decisions.

Transactions with associates—Staff analysis of feedback on proposed disclosure requirement (Agenda Paper 13C)

The IASB met to discuss an analysis of feedback on the proposal that an investor would disclose gains or losses from ‘downstream’ transactions with its associates or joint ventures.

The IASB was not asked to make any decisions.

Transactions with associates—Ways forward (Agenda Paper 13D)

The IASB decided to retain within the scope of the project the application question on inconsistency between IAS 28 Investments in Associates and Joint Ventures and IFRS 10 Consolidated Financial Statements.

All 13 IASB members agreed with this decision.

The IASB tentatively decided:

1. to introduce an accounting policy choice that permits an investor to choose either full or restricted recognition of gains or losses on all transactions with associates, except for gains or losses on transfer of businesses, which would be recognised in full;
2. to confirm its proposal in the Exposure Draft to withdraw the amendments in Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (2014); and
3. to amend IFRS 10 to require an investor that chooses to restrict gains and losses on transactions with associates to also restrict gains and losses on the loss of a control of a subsidiary that is not a business.

Twelve of 13 IASB members agreed with this decision.

The IASB tentatively decided that:

1. if an investor chooses to recognise gains or losses in full, the investor discloses:
   1. the accounting policy for recognising gains or losses on transactions with associates; and
   2. gains or losses from ‘downstream’ transactions with its associates (as proposed in the Exposure Draft); and
2. if an investor chooses to restrict the recognition of gains or losses, the investor discloses:
   1. its accounting policy for recognising gains or losses on transactions with associates;
   2. a reconciliation of the opening balance to the closing balance of restricted gains or losses on transactions with associates and joint ventures, including:
      1. the opening balance of the restricted gains or losses;
      2. the amounts of restricted gains or losses recognised in profit and loss included in the opening balance;
      3. the amounts of restricted gains and losses during the period, separately disclosing the amounts recognised in profit and loss in the current period; and
      4. the closing balance of restricted gains or losses;
   3. the amount of gains or losses restricted at the end of the period and where it is included in the statement of financial position; and
   4. the line items in the statement of comprehensive income where the restricted gains or losses have been recognised.

All 13 IASB members agreed with this decision.

Next step

The IASB will continue redeliberating the proposals in the Exposure Draft, including:

1. the scope of transactions to be disclosed for ‘downstream’ and ‘upstream’ transactions with an associate or joint venture; and
2. the possible introduction of an exemption from disclosing some or all of the information about gains or losses from transactions with associates or joint ventures, if the disclosure could be expected to seriously prejudice the investor or joint venturer.
   

Intangible Assets (Agenda Paper 17)

The IASB met on 19 May 2026 to discuss its research on user needs for information about recognised and unrecognised intangible assets and associated expenditure, including:

• a summary of feedback and other research findings; and
• possible implications of the feedback and research findings on the direction of the project.

The IASB was not asked to make any decisions.

Next steps

The IASB will:

1. ask its consultative groups for their views on the implications of the findings on user information needs for the direction of the project; and
2. start discussing potential changes to the definition of an intangible asset and associated guidance.
   

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

The IASB met on 20 May 2026 to continue redeliberating proposals in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment. 

The IASB discussed the suggested package of disclosures about the performance of a business combination and expected synergies from combining the operations of an acquirer and acquiree.

The IASB tentatively decided that the benefits of the suggested package of performance and expected synergy information would justify the costs.

Seven of 13 IASB members agreed with this decision.

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 19 May 2026 to discuss:

• improving disaggregation of cash flow information by strengthening its link with other information; and
• improving disclosure of changes in liabilities arising from financing activities.

Improving disaggregation of cash flow information by strengthening the link with other information (Agenda Paper 20A)

The IASB tentatively decided to propose adding:

1. application guidance on aggregating and disaggregating line items in the statement of cash flows that requires an entity:
   1. to use, as the basis for disaggregating line items in the statement of cash flows, the disaggregation of related line items of assets or liabilities presented in the statement of financial position; and
   2. to disclose how the disaggregation of line items in the statement of cash flows differs from the disaggregation of related line items in the statement of financial position, if applicable;
2. application guidance on labelling and describing line items that requires an entity to use similar labels for items with similar characteristics and different labels for items with different characteristics; and
3. application guidance specifying that if the information in a note relates to more than one primary financial statement, an entity would be required to cross-refer to that note in each related primary financial statement. 

All 13 IASB members agreed with this decision.

Changes in liabilities arising from financing activities (Agenda Paper 20B)

The IASB tentatively decided to propose clarifying the disclosure objective in paragraph 44A of IAS 7 Statement of Cash Flows. The clarified objective would refer to the ability of users of financial statements to link information disclosed about changes in liabilities arising from financing activities to the statement of financial position and the statement of cash flows.

All 13 IASB members agreed with this decision.

The IASB also tentatively decided:

1. to propose requiring an entity to satisfy the disclosure objective by:
   1. providing the information about changes in these liabilities using a reconciliation between the opening and closing balances in the statement of financial position; and
   2. disaggregating the opening and closing balances in (i) on the basis of the line items of those liabilities in the statement of financial position and the items of those liabilities disclosed in the notes; and
2. not to propose requiring an entity that discloses changes in liabilities arising from financing activities to disclose information about changes in additional assets and liabilities (for example, cash and cash equivalents).

Twelve of 13 IASB members agreed with this decision.

The IASB also discussed its previous tentative decision not to define the measure ‘net debt’, taking into account its more recent decisions.

The IASB tentatively decided, in line with its previous decision, not to explore developing additional requirements for an entity to disclose information about its net debt.

Eight 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

Maintenance and consistent application activities (Agenda Paper 12)

The IASB met on 19 and 20 May 2026 to discuss:

• the application question on the presentation of taxes or other charges that are not tax expense or tax income applying IAS 12 Income Taxes (IFRS 18 Presentation and Disclosure in Financial Statements); and
• the project on Amendments to the Fair Value Option (IAS 28 Investments in Associates and Joint Ventures).
  

Presentation of Taxes or Other Charges that Are Not Tax Expenses or Tax Income Applying IAS 12 (IFRS 18) (Agenda Papers 12A–D)

The IASB met on 19 May 2026 to consider decisions made by the IFRS Interpretations Committee (Committee) at its March 2026 meeting to finalise:

1. the Agenda Decision Presentation of Taxes or Other Charges that Are Not Tax Expense or Tax Income Applying IAS 12 Income Taxes (IFRS 18); and
2. updates to the Agenda Decision Presentation of Payments on Non-income Taxes (IAS 1 Presentation of Financial Statements and IAS 12) and the Agenda Decision Classification of Tonnage Taxes (IAS 12).

The IASB was asked whether it objected to the Agenda Decision in (a) and the updates to the agenda decisions in (b). The IASB also considered whether to amend any IFRS Accounting Standards to address concerns about the outcome of applying the requirements in IFRS 18 to particular taxes or other charges that are not tax expense or tax income applying IAS 12 (non-income tax charges).

The IASB decided to explore amending IFRS 18 to require or allow 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.

Eleven of 13 IASB members agreed with this decision.

The IASB deferred a decision on whether it objects to the Agenda Decision and the updates to the two agenda decisions.

Twelve of 13 IASB members agreed to defer this decision.

Next steps

The IASB will decide whether to proceed with the potential amendment to IFRS 18. It will also decide whether it objects to the Agenda Decision and the updates to the two agenda decisions.

Amendments to the Fair Value Option (IAS 28) (Agenda Papers 12E–G)

The IASB met on 20 May 2026 to discuss the proposals set out in the Exposure Draft Amendments to the Fair Value Option for Investments in Associates and Joint Ventures. The IASB discussed:

1. feedback on the proposals and analysis and recommendations based on the feedback (Agenda Papers 12E–F); and
2. due process steps taken to begin the process for balloting the amendments to IAS 28 (Agenda Paper 12G).

Feedback, staff analysis and recommendations (Agenda Papers 12E–F)

The IASB discussed the proposals in the Exposure Draft to clarify which entities are eligible to measure investments in associates and joint ventures using the fair value option in IAS 28.

The IASB tentatively decided to finalise its proposals:

1. to clarify that an entity that has a main business activity of investing in particular types of assets (as set out in paragraph 49(a) of IFRS 18) is eligible to elect the fair value option in IAS 28; and
2. to require an entity to apply the amendments to IAS 28 to IAS 28 at the same time, and on the same basis, as it applies IFRS 18.

All 13 IASB members agreed with this decision. 

The IASB also tentatively decided to explore an unrestricted fair value option as part of its future work plan priorities.

All 13 IASB members agreed with this decision.

Due process (Agenda Paper 12G)

The IASB discussed due process steps and the request for permission to begin the balloting process on the amendments to IAS 28.

The IASB decided to issue the amendments without re-exposure.

All 13 IASB members agreed with this decision.

All 13 IASB members confirmed they were satisfied that the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the amendments.

No IASB member indicated an intention to dissent from issuing the amendments.

Next step

The IASB expects to issue the amendments to IAS 28 in mid-2026.

Provisions—Targeted Improvements (Agenda Paper 22)

The IASB met on 18 May 2026 to discuss:

• further details of a model for possible application requirements for levies; and
• consequences of these application requirements for a requirement proposed in paragraph 14Q of the Exposure Draft Provisions—Targeted Improvements.

Application requirements for levies (Agenda Paper 22A)

At its February 2026 meeting, the IASB had tentatively decided to supplement the ‘past-event’ recognition condition proposed in the Exposure Draft with application requirements for levies. Those application requirements would specify a principle supported by a constraining presumption.

At this meeting, the IASB tentatively decided:

1. to make the constraining presumption non-rebuttable; and
2. to express the resulting application requirements as:
   1. a general requirement—the past-event condition is met when an entity has obtained the economic benefit or conducted the activity required by levy legislation for a levy to be payable (the relevant economic benefit or activity); and
   2. a supporting principle—if more than one economic benefit or activity is required for a levy to be payable, the relevant economic benefit or activity is the one that best reflects the economic benefit or activity the government is seeking to levy.

Eleven of 13 IASB members agreed with decision (a) and all 13 IASB members agreed with decision (b).

Consequences for paragraph 14Q (Agenda Paper 22B)

The IASB tentatively decided to omit from IAS 37 Provisions, Contingent Liabilities and Contingent Assets the requirement proposed in paragraph14Q of the Exposure Draft.

Twelve of 13 IASB members agreed with this decision.

Next step

The IASB will be asked to decide the project direction, including whether to carry out further work, before making a final decision on the possible application requirements.