Editorial Team – [2026] 183 taxmann.com 652 (Article)
Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update:
1. IASB Issues Consultation on Clarifying the Fair Value Option under IAS 28
The International Accounting Standards Board (IASB) has issued a consultation proposing targeted amendments to clarify which investments are eligible to be measured using the fair value option under IAS 28 Investments in Associates and Joint Ventures. The proposal responds to stakeholder feedback highlighting diversity in the application of the fair value option and its consequential impact on the classification of income and expenses in the statement of profit or loss under IFRS 18 Presentation and Disclosure in Financial Statements. The issue has gained prominence as entities evaluate the election of the fair value option while implementing IFRS 18. The IASB’s narrow-scope amendments aim to enhance consistency in practice and provide timely clarity before the effective date of IFRS 18. A shortened comment period has been set to facilitate finalisation of amendments in time for implementation. The consultation is open until 20 April 2026, and the IASB intends to finalise any amendments by mid-2026 to enable jurisdictions to incorporate the changes into national legislation. Stakeholders may access the Exposure Draft titled Amendments to the Fair Value Option for Investments in Associates and Joint Ventures and submit their comment letters by 20 April 2026.
Source – International Financial Reporting Standard
2. IFRS Accounting Taxonomy 2025 to Continue for the 2026 Reporting Period
The IFRS Foundation has clarified that the IFRS Accounting Taxonomy 2025 will continue to remain applicable for the 2026 reporting period, as there have been no changes to its content or underlying technology for 2026. Accordingly, entities preparing IFRS-compliant financial statements should continue using the 2025 Taxonomy for tagging financial information, in accordance with applicable local jurisdictional filing requirements. The next annual IFRS Accounting Taxonomy update is scheduled to be published in the first quarter of 2027.
The IFRS Foundation has also made available supporting resources to assist stakeholders, including the Guidance on the use of the 2025 IFRS Accounting Taxonomy for 2026 reporting periods (PDF), the Guidance on IFRS Accounting Taxonomy elements with reference notes (Excel), and the complete IFRS Accounting Taxonomy 2025 package.
Source – International Financial Reporting Standard
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