TECHNICAL HIGHLIGHTS

ETHICS

IESBA Releases Guide On Proportionality Of IESBA Code

IESBA has released a guide, “Proportionality of the IESBA Code”, to help professional accountants, and especially small and medium practices, understand how proportionality is built into the IESBA Code. The guide is meant to underscore that while ethics is not proportionate, the Code is. Proportionality is a defining feature of the Code’s design, embedded through its principles-based approach, its building-blocks architecture, and its scalable conceptual framework.

FINANCIAL REPORTING

ISCA Invites Comments On IFRS For SMEs Accounting Standard Exposure Draft: Consolidation Exception

Under the proposal, intermediate parents whose parent or ultimate parent is an investment entity that does not prepare consolidated financial statements would no longer be required to do so themselves.

ISCA invites comments to be submitted to ISCA Professional Standards by 29 July 2026.

May 2026 IASB Update And Podcast Available

In this IASB Update and Podcast, IASB Vice-Chair Linda Mezon-Hutter and IASB member Robert Uhl discuss highlights from the IASB meeting in May 2026, which includes Intangible Assets, Statement of Cash Flows and Related Matters, and Business Combinations – Disclosures, Goodwill and Impairment.

IASB Issues IFRS 20 To Improve Financial Reporting For Companies Subject To Rate Regulation

IASB has issued IFRS 20 Regulatory Assets and Regulatory Liabilities, a new accounting standard aimed at improving financial reporting for companies subject to specified rate regulation.

Compilation Of Agenda Decisions – Volume 14 Published

The IFRS Foundation has published Compilation of Agenda Decisions – Volume 14 from IFRIC, covering decisions issued between November 2025 and April 2026 which include new agenda decisions relating to IFRS 18 Presentation and Disclosure in Financial Statements:

• Assessment of a Specified Main Business Activity for the Purposes of the Separate Financial Statements of a Parent;
• Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset);
• Classification of Gains and Losses on a Derivative Managing a Foreign Currency Exposure; and
• Scope of the Requirement to Disclose Expenses by Nature.

IFRS Foundation Proposes Updates To IFRS Accounting Taxonomy 2025

The IFRS Foundation has published IFRS Accounting Taxonomy 2025 – Proposed Update 1: General Improvements. The proposed updates include categorising text block elements according to their intended use, streamlining narrative elements to align with current modelling policies, and introducing targeted refinements to documentation labels and element types.

June 2026 Agenda And Meeting Papers Available

• Emerging Economies Group (EEG)
  
  At the EEG meeting on 8 and 9 June 2026, the topics discussed include Provisions – Targeted Improvements, Risk Mitigation Accounting, Post-Implementation Review of IFRS 16, and Statement of Cash Flows and Related Matters.
  
  
• Due Process Oversight Committee (DPOC)
  
  At the DPOC meeting on 10 June 2026, the topics discussed include updates on the technical activities of IASB and ISSB, and IASB’s implementation support plans for IFRS 20 Regulatory Assets and Regulatory Liabilities, which is effective 1 January 2029.
  
  
• IFRIC
  
  At the IFRIC meeting on 16 and 17 June 2026, the topics discussed include proposed tentative agenda decisions to address submissions relating to several IFRS 18 application issues, including (i) whether confidential investor presentations shared with a limited group constitute public communications for identifying management-defined performance measures (MPMs); (ii) whether performance measures that include hypothetical income and expenses can meet the definition of an MPM; (iii) and how a manufacturer-lessor assesses whether its operating lease activity is a specified main business activity (that is, providing financing to customers or investing in assets).

SUSTAINABILITY & CLIMATE CHANGE

May 2026 ISSB Update And Podcast Available

In this ISSB Update and Podcast, ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd share on topics discussed at the ISSB meeting in May 2026, which include the disclosure requirements for information about the use of nature-related scenario analysis, identification of nature-related risks and opportunities, and feedback from last year’s consultation on ISSB’s proposed amendments to nine SASB Standards.

GRI And IFRS Foundation Reaffirm Commitment To Complementary Disclosures

In a newly issued joint statement, the Global Reporting Initiative (GRI) and IFRS Foundation outline how the GRI Standards and ISSB Standards can be used together to support efficient and comprehensive sustainability disclosures that meet the needs of both investors and wider group of stakeholders.