IASB issues annual improvements to IFRS Accounting Standards
Executive Summary
The International Accounting Standards Board (IASB) has published 'Annual Improvements to IFRS Accounting Standards – Volume 11' addressing non-urgent (but necessary) minor amendments to the following standards:
- IFRS 1, First-time Adoption of International Financial Reporting Standards - Hedge accounting by a first-time adopter
- IFRS 7, Financial Instruments: Disclosures - Gain or loss on derecognition
- Guidance on implementing IFRS 7 Financial Instruments: Disclosures - Disclosure of deferred difference between fair value and transaction price and Introduction and credit risk disclosures
- IFRS 9, Financial Instruments - Derecognition of lease liabilities and transaction price
- IFRS 10, Consolidated Financial Statements - Determination of a 'de facto' agent
- IAS 7, Statement of Cash Flows - Cost method
Background
The publication is a collection of amendments to IFRS Standards discussed by the IASB during the current project cycle for annual improvements. The IASB uses the Annual Improvements process to make necessary, but non-urgent, amendments to IFRS Standards that will not be included as part of any other project. By presenting the amendments in a single document rather than as a series of piecemeal changes, the IASB aims to ease the burden of change for all concerned. A summary of the issues addressed is set out in the attached issuance.
Effectivity
The amendments are effective from annual reporting periods beginning on or after 1 January 2026, with early application permitted.
