06/01/2026
IFRS recap: What mattered in 2025
Why this matters
2025 was a “tightening” year: more precision in liability presentation, leaseback measurement, supplier finance disclosures, and FX where currencies are not exchangeable. 2026 shifts the spotlight to financial instruments and contracts linked to nature-dependent electricity (e.g., certain PPAs) plus annual improvements.
Effective dates below refer to annual reporting periods beginning on/after the stated date (unless your local adoption timeline differs).
1) The 2025 recap: standards/amendments clients needed on their radar
A) Supplier Finance Arrangements (IAS 7 & IFRS 7 amendments)
If your business uses supplier finance / reverse factoring / payables financing, 2025 financial statements likely required enhanced disclosures to improve transparency around liquidity risk and cash-flow presentation.
IFRS Foundation
+1
Client readiness checks
Identify all supplier finance programmes (including those embedded in procurement).
Confirm how they affect cash flow classification and liquidity risk disclosures.
Ensure treasury/procurement/accounting are aligned (these programmes often sit outside finance).
😎 Leases: Lease Liability in a Sale and Leaseback (IFRS 16 amendments)
Where clients executed sale-and-leaseback transactions, the amendments tightened how the lease liability is measured after the transaction, to prevent recognising “gains” that should not arise economically.
Client readiness checks
Reassess sale-and-leaseback models (especially with variable payments).
Validate assumptions used for subsequent measurement and disclosures.
C) Liabilities presentation: IAS 1 amendments (classification + covenants)
For borrowers, 2025 was a year to double-check current vs non-current classification, especially where loan covenants exist and compliance timing matters.
Client readiness checks
Inventory covenants and test dates (and align with reporting period requirements).
Strengthen documentation for classification conclusions and disclosures.
D) FX: Lack of Exchangeability (IAS 21 amendments) effective 1 Jan 2025
This is big for any entity operating in markets where currency convertibility is restricted. The amendments clarify when a currency is “not exchangeable” and how to determine an appropriate rate and disclosures.
Client readiness checks
Identify exposures (cash, intercompany, imports, dividends, settlements) in constrained currencies.
Define evidence for “lack of exchangeability” and document estimation methodology.
Client readiness checks
Identify contracts that may qualify (physical or virtual PPAs; “own-use” considerations).
Reassess hedge accounting eligibility and documentation.
Prepare for new investor-focused disclosures on performance and cash-flow effects.
