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

The IASB met on 23 September 2026 to discuss remaining aspects of the proposed amendments to IFRS 18 Presentation and Disclosure in Financial Statements.

The proposed amendments would require an entity to classify, in the income taxes category of the statement of profit or loss, tax charges imposed by a government as a direct substitute for income taxes. The IASB tentatively decided to amend IFRS 19 Subsidiaries without Public Accountability: Disclosures to require an eligible subsidiary that applies IFRS 19 and classifies tax charges other than income taxes in the income taxes category to disclose:

1. the nature and amount of those tax charges and the bases for their calculation; and
2. the effect of those tax charges for each item disclosed in the reconciliation required by paragraph 123(c) of IFRS 18.

All 12 IASB members agreed with this decision.

The IASB tentatively decided:

1. to require an entity to apply the proposed amendments retrospectively in accordance with IAS 8 Basis of Preparation of Financial Statements; and
2. to provide no exemption or exception from retrospective application of the proposed amendments for first-time adopters.

All 12 IASB members agreed with this decision.

The IASB set a 120-day comment period for the exposure draft.

All 12 IASB members agreed with this decision.

All 12 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.

Two IASB members indicated an intention to dissent from the proposals in the exposure draft.