Beyond the GAAP editions

The IASB continues to update its accounting standards. Following the publication of IFRS 18 – Presentation and Disclosure in Financial Statements and IFRS 19 – Subsidiaries without Public Accountability, changes are coming for regulated activities with the publication, announced for the second quarter, of IFRS 20 – Regulatory Assets and Regulatory Liabilities.

This month, the IASB approved updates to six agenda decisions of the IFRS IC, a move made necessary by the application of IFRS 18 as of 1 January 2027, which will replace IAS 1. Regarding the Committee’s recommendation to withdraw the Agenda Decision “Supply Chain Financing Arrangements—Reverse Factoring”, the IASB decided to defer its decision, and will undertake targeted outreach to identify any specific accounting matters that might arise from withdrawal of the Agenda Decision.

As we approach year-end 2025, Beyond the GAAP presents our traditional summary of the IASB texts in force at 31 December 2025, as well as an overview of ESMA’s priorities for this year’s closing of accounts. Given the uncertainties arising from the current economic and geopolitical environment, the regulator emphasises the need for transparent communication on significant judgements and estimates, particularly as regards impairment testing of non-financial assets, recoverability of deferred tax assets, revenue recognition, valuation of inventories, restructuring, and assessment of credit risk.