In this article, we explore the new standards and amendments to existing standards that the International Accounting Standards Board (IASB) plans to issue this year and next, as well as the long-term projects it is currently working on or plans to include in its work plan over the next five years. The work plan is usually updated after each IASB and Interpretations Committee meeting. The IASB’s latest work plan for the March 2024 meeting can be found here.

New IFRS Accounting Standards

In April 2024, the IASB is expected to publish the new IFRS 18 Presentation and Disclosure in Financial Statements. The new IFRS Accounting Standard will replace IAS 1 Presentation of Financial Statements and make consequential amendments to other IFRS Accounting Standards. The objective of IFRS 18 is to improve how information is communicated in the financial statements, with a focus on information in the statement of profit or loss. The new standard will be effective for annual reporting periods beginning on or after 1 January 2027.

In May 2024, the IASB is expected to publish the new IFRS 19 Subsidiaries without Public Accountability: Disclosure. This new IFRS Accounting Standard is voluntary and would permit a subsidiary to apply reduced disclosure requirements when applying IFRS Accounting Standards in its financial statements provided that the subsidiary does not have public accountability and its ultimate or any intermediate parent produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. The new standard will be effective for annual reporting periods beginning on or after 1 January 2027.

In 2025, the IASB plans to issue the new IFRS 20 Regulatory Assets and Regulatory Liabilities which will affect entities subject to a regulatory agreement that is capable of creating regulatory assets and regulatory liabilities. The new standard would replace IFRS 14 Regulatory Deferral Accounts which has not been endorsed for use in the EU.

In the work plan of IASB, the following new standards are also included. They are in various stages of development and are not expected to be published before 2026:

• Financial Instruments with Characteristics of Equity (Exposure draft issued in November 2023)
• Business Combinations – Disclosures, Goodwill and Impairment (Exposure draft issued in March 2024)
• Dynamic Risk Management (Exposure draft is expected in H1 2025)
• Equity Method (Exposure draft is expected in H2 2025)

Amendments to the existing IFRS Accounting Standards

In May 2024, the IASB will issue the amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments.

In the third quarter of 2024, the IASB plans to issue Annual Improvements to IFRS Accounting Standards which will include 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
  • Amendments to Guidance on implementing IFRS 7 – Disclosure of Deferred Difference between Fair Value and Transaction Price
  • Amendments to Guidance on implementing IFRS 7 – Introduction and Credit Risk Disclosures
• IFRS 9 Financial Instruments:
  • Derecognition of Lease Liabilities
  • Transaction Price
• IFRS 10 Consolidated Financial Statements – Determination of a ‘De Facto Agent‘
• IAS 7 Statement of Cash Flows – Cost Method

During 2024, the following exposure drafts are expected to be issued by the IASB (final amendments are expected to be issued in 2025):

• Amendments to IFRS 9 Financial Instruments – Power Purchase Agreements
• Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets – Provisions –Targeted Improvements
• Amendments to IAS 21 The Effects of Changes in Exchange Rates – Use of a Hyperinflationary Presentation Currency by a Non-hyperinflationary Entity

In the third quarter of 2024, feedback statements are also expected on the Post-implementation Review of the following two standards:

• IFRS 9 Financial instruments —Impairment
• IFRS 15 Revenue from Contracts with Customers

IASB pipeline projects

In addition to the above new standards and amendments to the existing standards, there is a special pipeline page that details projects in the IASB pipeline and requests the Interpretations Committee has received but not yet discussed.

There are five research pipeline projects that the IASB expects to start work on before its next five-yearly agenda consultation:

• Intangible Assets
• Statement of Cash Flows and Related Matters
• Amortised Cost Measurement
• Post-implementation Review of IFRS 9 Financial Instruments –Hedge Accounting
• Post-implementation Review of IFRS 16 Leases

The IASB will first focus on work already underway, as well as any time-sensitive work. This means that the IASB may not make substantial progress on these projects immediately.

There are also two maintenance pipeline projects that are expected to be narrow in scope:

• Sale and Leaseback of an Asset in a Single-Asset Entity (IFRS 10 and IFRS 16)
• International Tax Reform –Pillar Two Model Rules (IAS 12)

There are also two projects on the reserve list which will be added to the work plan if, and only if, additional capacity becomes available before the IASB’s next five-yearly agenda consultation:

• Operating Segments
• Pollutant Pricing Mechanisms

Source: https://www.ifrs.org/projects/work-plan