Key takeaways
- At its July 2026 meeting, the IASB withdrew the agenda decision on Supply Chain Financing Arrangements (Reverse Factoring)
- The IASB tentatively decided to propose an amendment to IFRS 18 on tax charges imposed by a government as a direct substitute for income taxes. The exposure draft is expected in the fourth quarter of 2026
- The post-implementation review of IFRS 16 is complete: the standard works overall as intended, and the IASB confirmed four tentative decisions on follow-up work
- The request for information on IFRS 9 hedge accounting should be limited to the usual general questions on objectives, benefits and costs
- The IFRS Foundation is consulting on targeted amendments to its Constitution until 16 November 2026, and the ISSB plans to publish an exposure draft on nature-related disclosures in October 2026
- The autumn of 2026 opens with a packed IFRS agenda, with IASB initiatives on reverse factoring, IFRS 18, IFRS 16 and IFRS 9 hedge accounting.
- These developments confirm the focus on readable financial statements, consistent classifications and the cost of implementing the standards.
The IFRS updates at a glance
Topic | What happened | Next step |
| IFRS 18: reverse factoring agenda decision | IASB decided at its July meeting to withdraw it, following the IFRS IC recommendation | Agenda decision withdrawn |
| IFRS 18: tax charges substituting for income taxes | Tentative decision to propose an amendment | Exposure draft expected in Q4 2026 |
| IFRS 16: post-implementation review | Discussions completed; standard working overall as intended | Project summary and feedback statement in Q4 2026 |
| IFRS 9: hedge accounting post-implementation review | Topics for the request for information assessed | Request for information expected to be limited to general questions |
| IPTF watch list on hyperinflationary economies | Updated list published in July | Consult official sources when exercising judgement |
| IFRS Foundation Constitution | Exposure draft on targeted amendments published in August | Consultation open until 16 November 2026 |
| ISSB nature-related disclosures | Due process steps discussed at the July meeting | Exposure draft planned for October 2026, 120-day comment period |
IFRS 18 news: IASB withdraws the agenda decision on reverse factoring
Ahead of the entry into force of IFRS 18, the IASB had approved updating a number of IFRS IC agenda decisions by replacing references to IAS 1 with references to IFRS 18.
The agenda decision on Supply Chain Financing Arrangements (Reverse Factoring) required more work, so the IFRS Interpretations Committee (IFRS IC) recommended its withdrawal. After considering feedback from targeted outreach on the potential accounting implications, the IASB decided at its July meeting to withdraw it.
Date | Event |
| December 2020 | Agenda decision published, establishing a framework for analysing the application of IFRS provisions to reverse factoring transactions |
| May 2023 | Amendments to IAS 7 and IFRS 7 clarify the disclosures to be provided in the notes regarding Supplier Finance Arrangements |
| July 2026 | IASB withdraws the agenda decision |
IFRS 18 news: presentation of tax charges imposed as a direct substitute for income taxes
At its July meeting, the IASB tentatively decided to propose an amendment to IFRS 18 addressing stakeholders' concerns about applying IFRS 18 to certain taxes or other charges that constitute neither a tax expense nor tax income under IAS 12.
- Proposed requirement: classify tax charges imposed by a government as a direct substitute for income taxes in the income taxes category of the statement of profit or loss
- Condition: legislation specifies that an entity pays either an income tax or a specified tax charge
- Proposed accompanying guidance: presentation of such tax charges and the associated disclosures, in particular their effect on management-defined performance measures
The exposure draft containing the proposed amendments is expected in the fourth quarter of 2026.
IFRS 16: the IASB completes its post-implementation review
At its July meeting, the IASB completed its discussions on stakeholder feedback received as part of the post-implementation review (PiR) of IFRS 16 Leases. It concluded that the standard was working overall as intended and confirmed its previous tentative decisions:
Decision | Scope | Examples |
| Research project added to the pipeline | Explore how to mitigate lessees' application costs of the IFRS 16 measurement requirements | Remeasurements of the lease liability: reduce their frequency, simplify the requirements for variable payments linked to an index or a rate. Discount rates: require or permit a simplified discount rate instead of an incremental borrowing rate, and an unchanged discount rate for some remeasurements |
| Narrow-scope project added | Clarify how a lessee applies IFRS 16 and IFRS 9 to a rent concession granted by the lessor | Where the concession is the only change to the lease contract |
| Priority to be considered in the next agenda consultation | Effects of applying IFRS 16 and IFRS 10 to sale and leaseback transactions of an asset in a single-asset entity | Together with other corporate wrapper matters |
| Option to be explored in the statement of cash flows project | Require lessees to disclose the components of the total cash outflow for leases | Together with the line item in the statement of cash flows where each component is presented |
The IASB will publish a project summary and feedback statement on the post-implementation review of IFRS 16 in the fourth quarter of 2026.
IFRS 9 hedge accounting: preparing the request for information
After launching the preparatory phase of the post-implementation review of IFRS 9 on hedge accounting in the first half of 2026, the IASB assessed stakeholder feedback at its July 2026 meeting to identify the topics for its Request for Information (RFI), based on the staff analysis.
Most stakeholders said the hedge accounting requirements in IFRS 9 are working as intended: compared with IAS 39, they made it easier to reflect in the financial statements the accounting effects of hedging transactions on risk management activities. Views on the hedge accounting disclosure requirements in IFRS 7 were mixed. Without questioning whether the requirements work overall as intended, stakeholders reported four implementation difficulties:
Difficulty | Examples |
| Judgement required | Whether a forecast transaction is "highly probable to occur", whether an economic relationship exists between a hedged item and a hedging instrument, whether specific disclosures provide decision-useful information |
| Cost or operational complexity | Determining the cost of the hedge between the "aligned" and "unaligned" portions of a hedging instrument, applying a basis adjustment to inventory when individual items are not tracked, preparing certain IFRS 7 disclosures |
| Need for more application guidance or educational material | Rebalancing requirements, reconciliation between ineffectiveness and the difference between the changes in fair value of the hedged item and of the hedging instrument |
| Desire to expand the scope of eligible items | Planned transactions whose completion is deal-contingent or whose volume is likely to vary |
On this basis, the IASB appears to be accepting the staff recommendation not to include questions on specific requirements in the RFI. Its tentative decision suggests the request for information should be limited to the usual general questions designed to assess whether:
- the requirements are meeting their objectives
- the benefits to users of the information arising from applying those requirements are as expected
- the costs of applying those requirements, and of auditing and enforcing their application, are as expected
