Version 10 - August 2025 (CUD release)

Content update information

Financial Period Type: 12 months (Annual)
Target Industry Type: Manufacturing, Services, and Generic (excluding Financial Services)

IFRS legislative changes

Classification of Liabilities as Current or Non-current and Non-current liabilities with Covenants – Amendments to IAS 1
Lease Liability in a Sale and Leaseback – Amendments to IFRS 16
Disclosure: Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7
Lack of exchangeability – Amendments to IAS 21
Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
Improvements to International Financial Reporting Standards
Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7
IFRS 18 – Presentation and Disclosure in Financial Statements
IFRS 19 – Subsidiaries without Public Accountability: Disclosures
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture – Amendments to IFRS 10 and IAS 28

Early adoption standards

Effective for annual periods beginning on or after 1 January 2024. The amendments must be applied retrospectively. In January 2020 and October 2022, the Board issued amendments to IAS 1 Presentation to Financial Statements to specify the requirements for classifying liabilities as current or non-current. The amendments clarify:
What is meant by a right to defer settlement.
That a right to defer settlement must exist at the end of the reporting period.
That classification is unaffected by the likelihood that an entity will exercise its deferral right.
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.
Disclosures .
Early application is permitted and must be disclosed. However, an entity that applies the 2020 amendments early is also required to apply the 2022 amendments, and vice versa.
Note: Although the Final Good Group for 2025 is still in the progress the final scope will be defined later, but it is likely that this changes will have impact on all entities.
The amendment to IFRS 16 Leases specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains.
A seller-lessee applies the amendment to annual reporting periods beginning on or after 1 January 2024. Earlier application is permitted and that fact must be disclosed.
Note: Although the Final Good Group for 2025 is still in the progress the final scope will be defined later, but it is likely that this changes will have impact on all entities.
A seller-lessee applies the amendment retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after the date of initial application (i.e., the amendment does not apply to sale and leaseback transactions entered into prior to the date of initial application). The date of initial application is the beginning of the annual reporting period in which an entity first applied IFRS 16.
Note: Although the Final Good Group for 2025 is still in the progress the final scope will be defined later, but it is likely that this changes will be covered within Good Group.
The amendments specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The amendments will be effective for annual reporting periods beginning on or after 1 January 2024. Early adoption is permitted, but will need to be disclosed. The amendments provide some transition reliefs regarding comparative and quantitative information as at the beginning of the annual reporting period and interim disclosures.
Although the Final Good Group for 2025 is still in the progress the final scope will be defined later, but it is likely that this changes will have impact on all entities in the scope.
The amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments will be effective for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted, but will need to be disclosed. When applying the amendments, an entity cannot restate comparative information.
Note: Although the Final Good Group for 2025 is still in the progress the final scope will be defined later, but it is likely that this changes will be covered within Good Group.
In May 2024, the Board issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). The amendments will be effective for annual reporting periods beginning on or after 1 January 2026. Entities can early adopt the amendments that relate to the classification of financial assets plus the related disclosures and apply the other amendments later. The new requirements will be applied retrospectively with an adjustment to opening retained earnings. Prior periods are not required to be restated and can only be restated without using hindsight. An entity is required to disclose information about financial assets that change their measurement category due to the amendments.
Note: Although the Final Good Group for 2025 is still in the progress the final scope will be defined later.
The IASB’s annual improvements process deals with non-urgent, but necessary, clarifications and amendments to IFRS. In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards — Volume 11.
The following is the summary of the amendments from the Annual Improvements to IFRS Accounting Standards-Volume 11:

The amendments relating to the own-use exception must be applied retrospectively. An entity is not required to restate prior periods, and it is only permitted to do so if this can be done without using hindsight. The hedge accounting amendments must be applied prospectively to new hedging relationships designated on or after the date of initial application. The IFRS 7 disclosure amendments must be applied when the IFRS 9 amendments are applied. If an entity does not restate comparative information, then the entity must not present comparative disclosures.
Note: Although the Final Good Group for 2025 is still in the progress the final scope will be defined later.
In April 2024, the Board issued IFRS 18 Presentation and Disclosure in Financial Statements which replaces IAS 1. IFRS 18 introduces new categories and subtotals in the statement of profit or loss. It also requires disclosure of management-defined performance measures (as defined) and includes new requirements for the location, aggregation and disaggregation of financial information. IFRS 18, and the consequential amendments to the other accounting standards, is effective for reporting periods beginning on or after 1 January 2027 and must be applied retrospectively. Early adoption is permitted and must be disclosed.
IFRS 19 is effective for reporting periods beginning on or after 1 January 2027 and earlier adoption is permitted. If an eligible entity chooses to apply the standard earlier, it is required to disclose that fact. An entity is required, during the first period (annual and interim) in which it applies the standard, to align the disclosures in the comparative period with the disclosures included in the current period under IFRS 19, unless IFRS 19 or another IFRS accounting standard permits or requires otherwise.
Note: Although the Final Good Group for 2025 is still in progress and the final scope will be defined later, the effective date is set for January 1, 2017. It is unlikely that this will impact financial reporting for 2025.
The amendments address the conflict between IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that a full gain or loss is recognised when a transfer to an associate or joint venture involves a business as defined in IFRS 3 Business combinations. Any gain or loss resulting from the sale or contribution of assets that does not constitute a business, however, is recognised only to the extent of unrelated investors’ interests in the associate or joint venture. Transition The amendments must be applied prospectively. Early application is permitted and must be disclosed.
Note: Although the Final Good Group for 2025 is still in progress and the final scope will be defined later. It is unlikely that this will be in scope of the Final Good Group 2025.

Table of mandatory application

Additional information