BDO submits comment letter: classification of gains and losses related to derivatives (IFRS 18)
BDO submitted its comment letter on the IFRS Interpretation Committee’s (the Committee) Tentative Agenda Decision (TAD): Classification of Gains and Losses on a Derivative Managing a Foreign Currency Exposure (IFRS 18 Presentation and Disclosure in Financial Statements).
The issue raised to the Committee concerned how an entity should classify gains and losses on a derivative used to manage the foreign currency risk of a net liability exposure, when that derivative is not designated as a hedging instrument under IFRS 9 Financial Instruments. The question was how to classify these gains or losses in the statement of profit or loss applying the requirements of IFRS 18. The Committee concluded that because the derivative is used to manage only the net liability foreign currency risk, which affects the financing category only, any gains or losses on the derivative must be classified in the financing category. Doing so does not require prohibited ‘grossing up’ of gains or losses.
BDO agrees that the conclusion in the TAD results in a more appropriate outcome than would otherwise arise if it were concluded that the ‘gross up’ prohibition in IFRS 18.B72 were applicable.
BDO notes that the fact pattern considered is simplified, and further application issues may arise in circumstances involving greater complexity.
The comment letter may be accessed here.
BDO submits comment letter: Presentation of Taxes that are not in the Scope of IAS 12 Income Taxes
BDO submitted its comment letter on the IFRS Interpretation Committee’s (the Committee) Tentative Agenda Decision: Presentation of Taxes or Other Charges that are Not Income Taxes within the Scope of IAS 12 Income Taxes (IFRS 18 Presentation and Disclosure in Financial Statements).
The issue raised to the Committee is whether an entity applying IFRS 18 may present taxes or other charges that are not income taxes within the scope of IAS 12 in either the ‘income tax expense or income’ line item or elsewhere within the income taxes category of the statement of profit or loss. The Committee noted that IFRS 18 requires the income taxes category to include only tax expense or tax income included in the statement of profit or loss applying IAS 12, along with related foreign exchange differences. Therefore, entities cannot present taxes or other charges outside the scope of IAS 12 in this category or within the required ‘income tax expense or income’ line item. Entities may, however, present additional line items and subtotals in a primary financial statement if needed for a useful structured summary. The Committee concluded that existing requirements in IFRS Accounting Standards provide an adequate basis and therefore decided not to add a standard‑setting project to the work plan.
BDO broadly agrees with the technical analysis set out in the TAD. BDO, however, notes that the TAD is more restrictive than IFRS 18 in determining the income and expenses that may be classified in the income tax category. Therefore, BDO recommends that the TAD be suitably amended to align with the scope of income taxes category (taxes accounted applying IAS 12) as required by IFRS 18 instead of referring to taxes within the scope of IAS 12.
The comment letter may be accessed here.
January 2026 IASB Update available
The Update of International Accounting Standard Board’s (IASB) January 2026 meeting has been made available. The meeting was held in London from 27 to 28 January 2026.
The topics discussed in the meeting included:
The Update may be accessed here.
Two IFRIC agenda decisions published in an addendum to the November 2025 IFRIC Update
During its meeting held in November 2025, IFRS Interpretations Committee (IFRIC) had finalised the following agenda decisions:
In accordance with the Due Process Handbook, the International Accounting Standards Board (IASB) discussed the agenda decisions in its January 2026 meeting and did not object to it.
The final agenda decisions are now published in an addendum to the November 2025 IFRIC Update.
The addendum to the November 2025 IFRIC Update may be accessed here.
February 2026 SME Implementation Group agenda and meeting paper available
The agenda and meeting paper of the February 2026 SME Implementation Group (SMEIG) meeting is now available. The SMEIG met virtually on 5 February 2026 to discuss the Second Comprehensive Review of the IFRS for SMEs Accounting Standard.
The agenda and meeting paper may be accessed here.
ISSB releases January 2026 podcast
The International Sustainability Standards Board (ISSB) has released a new podcast hosted by ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd, covering recent progress in global adoption of ISSB Standards, ongoing support for implementing IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, and the ISSB’s standard-setting work on nature‑related risks and opportunities.
The press release and the podcast can be accessed via the link.
EFRAG releases new educational video series to support VSME implementation
EFRAG has released a set of three educational videos designed to help small and medium-sized enterprises (SMEs) meet the disclosure requirements of the VSME Comprehensive Module. These videos provide practical guidance on applying the three supporting guides published in December 2025 and preparing disclosures for C2, C3 and C7.
More details are available in the press release.
Accountancy Europe publishes ‘Omnibus explained: key changes to the CSRD and CSDDD’
Accountancy Europe has published two factsheets, which set out a summary of changes that have been made to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) as a result of the Omnibus I.
The publication is available at the link.