Final agenda decisions

Recent final IFRS Interpretations Committee agenda decisions are listed below.

At the bottom of the page, there is also a list of recent matters where the IASB has decided to undertake standard setting with respect to the matter discussed by the IFRS Interpretations Committee.

Links to the full agenda decision (or the IASB’s decision to undertake standard setting) are provided below.

We encourage you to read the agenda decisions and consider whether and how these may affect your financial statements.


Final agenda decisions – no standard-setting activity

Title

Summary

Link



Assessment of a Specified Main Business Activity for the Purposes of the Separate Financial Statements of a Parent (IFRS 18 Presentation and Disclosure in Financial Statements)

The Committee received a request about how a parent applying IFRS 18 assesses, for the purposes of its separate financial statements, whether it has a specified main business activity—in the fact pattern described in the request, a main business activity of investing in unconsolidated subsidiaries.

Read the final agenda decision

Date published: April 2026




Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18 Presentation and Disclosure in Financial Statements)

The Committee received a request about the classification of a foreign exchange difference from an intragroup monetary liability (or asset).

Read the final agenda decision

Date published: April 2026




Classification of Gains and Losses on a Derivative Managing a Foreign Currency Exposure (IFRS 18 Presentation and Disclosure in Financial Statements)

The Committee received a request about how an entity applies the requirements in paragraphs B70– B76 of IFRS 18 to classify gains or losses on a derivative financial instrument in its consolidated statement of profit or loss. The derivative is a forward contract that is used to manage the foreign currency risk of a net liability exposure but is not designated as a hedging instrument applying IFRS 9 Financial Instruments

Read the final agenda decision

Date published: April 2026




Economic Benefits from Use of a Battery under an Offtake Arrangement (IFRS 16 Leases)

The Committee received requests about how an entity applies the requirements in paragraph B9(a) of IFRS 16—specifically, how an entity determines whether a customer has the right to obtain substantially all of the economic benefits from use of an identified asset. The requests illustrate the question by describing a fact pattern involving a battery offtake arrangement.

Read the final agenda decision

Date published: April 2026




Fair Presentation and Compliance with IFRS Accounting Standards (IAS 1 Presentation of Financial Statements) [IAS 8 Basis of Preparation of Financial Statements]

The Committee received a request about the application of the requirements in paragraphs 15–24 of IAS 1 [paragraphs 6A–6J of IAS 8] relating to fair presentation and compliance with IFRS Accounting Standards.

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Date published: April 2026




Scope of the Requirement to Disclose Expenses by Nature (IFRS 18 Presentation and Disclosure in Financial Statements)

The Committee received a request about the scope of the requirements in paragraph 83 of IFRS 18.

Read the final agenda decision

Date published: April 2026




Determining and Accounting for Transaction Costs (IFRS 9 Financial Instruments)

The Committee received a request about the application of the definition of transaction costs in IFRS 9 and the requirements in IFRS 9 relating to transaction costs. 

Read the final agenda decision

Date published: January 2026




Embedded Prepayment Option (IFRS 9)

The Committee received a request about the application of the requirements in paragraph B4.3.5 of IFRS 9 to determine whether to separate an embedded prepayment option in a loan contract.

Read the final agenda decision

Date published: January 2026




Title

Summary

Link



Assessing Indicators of Hyperinflationary Economies (IAS 29 Financial Reporting in 
Hyperinflationary Economies)  

The Committee received a request about applying IAS 29 to identify when an economy becomes hyperinflationary.

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Date published: July 2025 




Guarantees Issued on Obligations of Other Entities 

The Committee received a request about how an entity accounts for guarantees that it issues.

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Date published: April 2025




Recognition of Intangible Assets from Climate-related Expenditure (IAS 38)

The Committee received a request about whether an entity's acquisitions of carbon credits and expenditure on research activities and development activities meet the requirements in IAS 38 to be recognised as intangible assets.

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Date published: April 2025




Recognition of Revenue from Tuition Fees (IFRS 15 Revenue from Contracts with Customers)  

The Committee received a request about the period over which an educational institution recognises revenue from tuition fees.

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Date published: April 2025




Classification of Cash Flows related to Variation Margin Calls on ‘Collateralised-to-Market’ Contracts (IAS 7 Statement of Cash Flows)

The Committee received a request about how an entity presents, in its statement of cash flows, the cash flows related to variation margin call payments made on contracts to purchase or sell commodities at a predetermined price and at a specified time in the future

Read the final agenda decision

Date published: January 2025




Title

Summary

Link



Disclosure of Revenues and Expenses for Reportable Segments (IFRS 8 Operating Segments) 

The Committee received a request about how an entity applies the requirements in paragraph 23 of IFRS 8 to disclose for each reportable segment specified amounts related to segment profit or loss.

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Date published: July 2024 

Updated in January 2026 to replace references to IAS 1 Presentation of Financial Statements with references to IFRS 18 Presentation and Disclosure in Financial Statements.




Climate-related Commitments (IAS 37 Provisions, Contingent Liabilities and Contingent Assets) 

The Committee received a request asking it to clarify:

  • whether an entity’s commitment to reduce or offset its greenhouse gas emissions creates a constructive obligation for the entity;
  • whether a constructive obligation created by such a commitment meets the criteria in IAS 37 for recognising a provision; and
  • if a provision is recognised, whether the corresponding amount is recognised as an expense or as an asset when the provision is recognised.

Read the final agenda decision

Date published: April 2024




Payments Contingent on Continued Employment during Handover Periods (IFRS 3 Business 
Combinations) 

The Committee received a request about how an entity accounts for payments to the sellers of a business it has acquired if those payments are contingent on the sellers’ continued employment during a post-acquisition handover period. 

Read the final agenda decision

Date published: April 2024 




Merger between a Parent and Its Subsidiary in Separate Financial Statements (IAS 27 Separate Financial Statements)

The Committee received a request about how a parent entity that prepares separate financial statements applying IAS 27 accounts for a merger with its subsidiary in its separate financial statements. Based on its findings, the Committee concluded that the matter described in the request does not have widespread effect. Consequently, the Committee decided not to add a standard-setting project to the work plan.

Read the final agenda decision

Date published: January 2024




Title

Summary

Link



Guarantee over a Derivative Contract (IFRS 9 Financial Instruments)

The Committee received a request about whether, in applying IFRS 9, an entity accounts for a guarantee written over a derivative contract as a financial guarantee contract or as a derivative. In the fact pattern described to the Committee, the guarantee holder would be reimbursed for the actual loss incurred—up to the close-out amount—in the event of default by the other party. The close-out amount is determined based on a valuation of the remaining contractual cash flows of the derivative immediately prior to default.

Read the final agenda decision

Date published: October 2023




Homes and Home Loans Provided to Employees 

The Committee received a request about how an entity accounts for employee home ownership plans and employee home loans of the types described in two fact patterns: one relating to employee home ownership plans and another relating to employee home loans. 

Read the final agenda decision

Date published: October 2023




Premiums Receivable from an Intermediary (IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments)

The Committee received questions about how an entity that issues insurance contracts (insurer) applies the requirements in IFRS 17 and IFRS 9 to premiums receivable from an intermediary.

Read the final agenda decision

Date published: October 2023




Definition of a Lease—Substitution Rights (IFRS 16 Leases) 

The Committee received a question about applying the requirements in IFRS 16 to assess whether a contract contains a lease, in a situation where the contract is for the use of several similar assets and the supplier has particular substitution rights.

Read the final agenda decision

Date published: April 2023 




Title

Summary

Link



Lessor Forgiveness of Lease Payments (IFRS 9 Financial Instruments and IFRS 16 Leases) 

The Committee received a request about a lessor’s application of IFRS 9 and IFRS 16 in accounting for a particular rent concession, with respect to an operating lease. The rent concession involved the lessor legally releasing the lessee from its obligation to make specifically identified lease payments, with no other changes to the lease contract.

Read the final agenda decision

Date published: October 2022 




Multi-currency Groups of Insurance Contracts (IFRS 17 Insurance Contracts and IAS 21 The Effects of Changes in Foreign Exchange Rates) 

The Committee received a request about how an entity accounts for insurance contracts with cash flows in more than one currency.

Read the final agenda decision

Date published: October 2022 




Special Purpose Acquisition Companies (SPAC): Accounting for Warrants at Acquisition 

The Committee received a request about how an entity accounts for warrants on the acquisition of a special purpose acquisition company (SPAC). A SPAC is a listed entity that is established to acquire a yet-to-be-identified target entity.

Read the final agenda decision

Date published: October 2022 




Negative Low Emission Vehicle Credits (IAS 37 Provisions, Contingent Liabilities and Contingent 
Assets) 

The Committee received a request asking whether particular measures to encourage reductions in vehicle carbon emissions give rise to obligations that meet the definition of a liability in IAS 37.

Read the final agenda decision

Date published: July 2022 




Special Purpose Acquisition Companies (SPAC): Classification of Public Shares as Financial 
Liabilities or Equity (IAS 32 Financial Instruments: Presentation) 

The Committee received a request about whether a special purpose acquisition company (SPAC), in applying IAS 32, classifies public shares it issues as financial liabilities or equity instruments. A SPAC is a listed entity that is established to acquire a yet-to-be-identified target entity.

Read the final agenda decision

Date published: July 2022 




Transfer of Insurance Coverage under a Group of Annuity Contracts (IFRS 17 Insurance Contracts) 

The Committee received a request about a group of annuity contracts. The request asked how an entity determines the amount of the contractual service margin to recognise in profit or loss in a period because of the transfer of insurance coverage for survival in that period.

Read the final agenda decision

Date published: July 2022 

 




Principal versus Agent: Software Reseller (IFRS 15 Revenue from Contracts with Customers)

The Committee was asked whether a reseller of software licences is a principal or agent for the purpose of applying IFRS 15 Revenue from Contracts with Customers.

Read the final agenda decision

Date published: May 2022 




Demand Deposits with Restrictions on Use arising from a Contract with a Third Party (IAS 7 Statement of Cash Flows)

The Committee was asked whether a demand deposit should be included within ‘cash and cash equivalents’ in the financial statements, if that demand deposit is subject to contractual restriction on use as agreed with a third party. 

 

Read the final agenda decision 

Date published: April 2022

Updated in January 2026 to replace references to IAS 1 Presentation of Financial Statements with references to IFRS 18 Presentation and Disclosure in Financial Statements.




TLTRO III Transactions (IFRS 9 Financial Instruments and IAS 20 Accounting for Government Grants and Disclosure of Government Assistance) 

The Committee received several questions on how the borrowing bank accounts for the amounts borrowed under TLTRO III. TLTRO III refers to the third programme of the targeted longer-term refinancing operations (TLTROs) of the European Central Bank (ECB). When a bank borrows from the ECB under this programme, the amount that the bank can borrow and the interest rate on each tranche of borrowings are linked to the volume and amount of loans that this bank advances to non-financial corporations and households.

Read the final agenda decision

Date published: March 2022 




Title

Summary

Link



Economic Benefits from Use of a Windfarm (IFRS 16 Leases) 

The Committee was asked whether a certain arrangement between a windfarm electricity generator and an electricity retailer gives the retailer the right to “obtain substantially all the economic benefits” from use of a windfarm over the term of the arrangement – and therefore, whether the arrangement contains a lease under IFRS 16 Leases

Read the final agenda decision

Date published: December 2021 




Accounting for Warrants that are Classified as Financial Liabilities on Initial Recognition (IAS 32 
Financial Instruments: Presentation) 

The Committee received a request about the application of IAS 32 Financial Instruments: Presentation to the reclassification of warrants. The question related to a warrant that gives the holder the right to buy a fixed number of the issuer’s equity instruments, for an exercise price that will be fixed at a future date. At initial recognition, the issuer classifies the warrant as a financial liability. The Committee was asked whether the issuer reclassifies the warrant as an equity instrument following the fixing of the exercise price after initial recognition.

Read the final agenda decision 

Date published: October 2021




Non-refundable Value Added Tax on Lease Payments (IFRS 16 Leases)

The Committee was asked how a lessee accounts for non-refundable value added tax (VAT) charged on lease payments. In the question received by the Committee, the lease agreement requires the lessee to make rent payments to the lessor on a VAT-inclusive basis. The lessee can recover from the government some, but not all, of the VAT that is pays to the lessor. The Committee was asked whether, in applying IFRS 16 Leases, the lessee includes non-refundable VAT in the lease payments (e.g. when calculating the lease liability).  

Read the final agenda decision 

Date published: October 2021




Costs Necessary to Sell Inventories (IAS 2 Inventories) 

IAS 2 defines the net realisable value of inventory (NRV) as the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The Committee was asked whether the ‘estimated costs necessary to make the sale’ include all costs necessary to make the sale, or only those costs that are incremental to the sale.

Read the final agenda decision

Date published: June 2021




Preparation of Financial Statements when an Entity is No Longer a Going Concern (IAS 10 Events after the Reporting Period) 

The Committee received a request about the accounting applied by an entity that is no longer a going concern. The request asked:

  • whether such an entity can prepare financial statements for prior periods on a going concern basis, if it was a going concern in those periods and has not previously prepared financial statements for those periods; and
  • whether the entity restates comparative information to reflect the basis of accounting used in preparing the current period’s financial statements, if it had previously issued financial statements for the comparative period on a going concern basis.

Read the final agenda decision

Date published: June 2021




Attributing Benefit to Periods of Service (IAS 19 Employee Benefits) 

The Committee was asked how an entity attributes benefits to periods of service for a particular defined benefit plan. The plan has the following terms:

  • employees are entitled to a lump sum benefit payment when they reach a specified retirement age (for example, age 62), provided they are still employed by the entity; and
  • the retirement benefit amount that the employee is entitled to depends on the employee’s length of service with the entity before the retirement age – but it is capped at a specified number of years (for example, 16 years).

Read the final agenda decision

Date published: May 2021




Hedging Variability in Cash Flows due to Real Interest Rates (IFRS 9 Financial Instruments)

The Committee received a request about applying the hedge accounting requirements in IFRS 9 when the risk management objective is to ‘fix’ cash flows in real terms.

Read the final agenda decision  

Date published: May 2021




Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38 Intangible 
Assets)

The Committee received a request about how an entity should account for costs incurred in configuring and customising software in cloud-based software as a service arrangements (SaaS) – should these costs be capitalised or expensed? 

Read the final agenda decision 

Date published: April 2021

XRB Staff Q&A's





Standard-setting projects arising from IFRS Interpretations Committee discussions

Title

IASB information

NZ Amending Standard

Application of the 'Own Use' Exemption (IFRS 9)

Read more

Contracts Referencing Nature Dependent Electricity

Cash Received via Electronic Transfer as Settlement for a Financial Asset (IFRS 9)

Read more

Amendments to the Classification and Measurement of Financial Instruments

Classification of debts with covenants as current or non-current (IAS 1) Read more 

Non-current liabilities with Covenants 

 

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