Standard

Details of amendment

Effective for annual periods beginning on or after

IFRS 1 First-time Adoption of International Financial Reporting Standards

Annual Improvements to IFRS Accounting Standards—Volume 11 – Hedge Accounting by a First-time Adopter

Narrow scope amendment to improve consistency with and understanding of the requirements in IFRS 9 Financial Instruments in relation to hedge accounting requirements for a first-time adopter.

1 January 2026

IFRS 7 Financial Instruments: Disclosures

Supplier Finance Arrangements

The amendment supplements existing disclosure requirements by requiring a company to disclose specific information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the company’s liabilities and cash flows and on the company’s exposure to liquidity risk.

1 January 2024

Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7

The amendments to IFRS 7 introduce additional disclosure requirements to enhance transparency for investors regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features, for example features tied to ESG-linked targets.

1 January 2026

Annual Improvements to IFRS Accounting Standards—Volume 11 – Gain or loss on derecognition

Narrow scope amendment to delete an obsolete reference that remained in IFRS 7 following the publication of IFRS 13 Fair Value Measurement and to make the wording of the requirements of IFRS 7 relating to disclosure of a gain or loss on derecognition consistent with the wording and concepts in IFRS 13.

1 January 2026

Contracts Referencing Nature-dependent Electricity- Amendments to IFRS 9 and IFRS 7

Narrow scope amendment adding new disclosure requirements to enable investors to understand the effect of contracts referencing nature-dependent electricity on an entity’s financial performance and cash flows.

1 January 2026

IFRS 9 Financial Instruments

Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7

Narrow scope amendments to address diversity in accounting practice by making the classification and measurement requirements of IFRS 9 more understandable and consistent, by:

o   Clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features; and

o   Clarifying the date on which a financial asset or financial liability is derecognised when a liability is settled through electronic payment systems. These amendments also introduce an accounting policy option to allow a company to derecognise a financial liability before it delivers cash on the settlement date if specified criteria are met.

1 January 2026

Annual Improvements to IFRS Accounting Standards—Volume 11

Two narrow scope amendments were made to IFRS 9:

o   Derecognition of lease liabilities. The amendment clarifies that, when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to recognise any resulting gain or loss arising from the difference between the carrying amount of the lease liability extinguished or transferred and any consideration paid in profit or loss.

o   Transaction price. Removal of an inconsistency between the requirements of IFRS 9 and the requirements in IFRS 15 Revenue from Contracts from Customers in relation to the initial measurement of trade receivables at their transaction price. The amendment clarifies that trade receivables must be measured at the amount determined by applying IFRS 15.

1 January 2026

Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7

Narrow scope amendment to allow entities to better reflect contracts referencing nature-dependent electricity (for example, renewable power purchase agreements or PPAs) by:

o   clarifying the application of the ‘own-use’ requirements of IFRS 9; and

o  permitting hedge accounting if these contracts are used as hedging instruments by parties to the contracts.

1 January 2026

IFRS 10 Consolidated Financial Statements

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

Narrow scope amendment address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.

The effective date of this amendment has been deferred indefinitely until further notice

Annual Improvements to IFRS Accounting Standards—Volume 11 – Determination of a ‘de facto agent’

Narrow scope amendment to clarify whether a party acts as a de facto agent in assessing control of an investee.

1 January 2026

IFRS 16 Leases

Lease Liability in a Sale and Leaseback

The narrow-scope amendment requires a seller-lessee in a sale and leaseback transaction to determine ‘lease payments’ or ‘revised lease payments’ in a way that the seller-lessee would not recognise any amount of a gain or loss relating to the right of use retained by the seller-lessee. The new requirement does not prevent the seller-lessee from recognising in profit or loss any gain or loss relating to the partial or full termination of a lease.

1 January 2024

IFRS 17 Insurance contracts

IFRS 17 creates one accounting model for all insurance contracts in all jurisdictions that apply IFRS Accounting Standards.

o   IFRS 17 requires an entity to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and take into account any uncertainty relating to insurance contracts.

o   The financial statements of an entity will reflect the time value of money in estimated payments required to settle incurred claims.

o   Insurance contracts are required to be measured based only on the obligations created by the contracts.

o   An entity will be required to recognise profits as an insurance service is delivered, rather than on receipt of premiums.

o   This standard replaces IFRS 4 – Insurance Contracts.

1 January 2023

IFRS 18 Presentation and Disclosure in Financial Statements

 o    IFRS 18 is the culmination of the IASB’s Primary Financial Statements project.

o    IFRS 18 introduces three sets of new requirements to improve companies’ reporting of financial performance and give investors a better basis for analysing and comparing companies:

o     Improved comparability in the statement of profit or loss (income statement) through the introduction of three defined categories for income and expenses—operating, investing and financing—to improve the structure of the income statement, and a requirement for all companies to provide new defined subtotals, including operating profit.

o     Enhanced transparency of management-defined performance measures with a requirement for companies to disclose explanations of those company-specific measures that are related to the income statement.

o     More useful grouping of information in the financial statements through enhanced guidance on how to organise information and whether to provide it in the primary financial statements or in the notes, as well as a requirement for companies to provide more transparency about operating expenses.

o   This Standard replaces IAS 1 Presentation of Financial Statements. It carries forward many requirements from IAS 1 unchanged.

1 January 2027

IFRS 19 Subsidiaries without Public Accountability: Disclosures

 o   IFRS 19 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements.

o   Subsidiaries are eligible to apply IFRS 19 if they do not have public accountability and their parent company applies IFRS Accounting Standards in their consolidated financial statements. A subsidiary does not have public accountability if it does not have equities or debt listed on a stock exchange and does not hold assets in a fiduciary capacity for a broad group of outsiders.

1 January 2027

IAS 1 Presentation of Financial Statements

Classification of Liabilities as Current or Non-current

Narrow-scope amendments to IAS 1 to clarify how to classify debt and other liabilities as current or non-current.

1 January 2024

Disclosure of Accounting Policies

The amendments require companies to disclose their material accounting policy information rather than their significant accounting policies, with additional guidance added to the Standard to explain how an entity can identify material accounting policy information with examples of when accounting policy information is likely to be material.

1 January 2023

Non-current liabilities with Covenants

The amendment clarifies that only covenants with which an entity is required to comply on or before the reporting date affect the classification of a liability as current or non-current, with additional guidance to explain how an entity should disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months.

1 January 2024

IAS 7 Statement of Cash Flows

Supplier Finance Arrangements

The amendment supplements existing disclosure requirements by requiring a company to disclose specific information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the company’s liabilities and cash flows and on the company’s exposure to liquidity risk.

1 January 2024

Annual Improvements to IFRS Accounting Standards—Volume 11 – Cost method

Narrow scope amendment to replace the term ‘cost method’ with ‘at cost’ following the earlier removal of the definition of ‘cost method’ from IFRS Accounting Standards.

1 January 2026

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Definition of Accounting Estimates

The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates, by replacing the definition of a change in accounting estimates with a new definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The requirements for recognising the effect of change in accounting prospectively remain unchanged.

1 January 2023

IAS 12 Income Taxes

Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendment clarifies how a company accounts for income tax, including deferred tax, which represents tax payable or recoverable in the future. In specified circumstances, companies are exempt from recognising deferred tax when they recognise assets or liabilities for the first time.  The aim of the amendments is to reduce diversity in the reporting of deferred tax on leases and decommissioning obligations, by clarifying when the exemption from recognising deferred tax would apply to the initial recognition of such items.

1 January 2023

International Tax Reform—Pillar Two Model Rules

The amendment introduces a temporary exception to the accounting for deferred taxes arising from jurisdictions implementing the global tax “Pillar Two model” rules, as well as targeted disclosure requirements to help investors better understand a company’s exposure to income taxes arising from the reform, particularly before legislation implementing the rules is in effect.

1 January 2023

IAS 21 The Effects of Changes in Foreign Exchange Rates

Lack of Exchangeability

The amendments require an entity to apply a consistent approach to assessing whether a currency is exchangeable into another currency and, when it is not, to determining the exchange rate to use and the disclosures to provide.

1 January 2025

IAS 28 Investments in Associates and Joint Ventures

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

Narrow scope amendment to address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.

The effective date of this amendment has been deferred indefinitely until further notice