Version 20 - April 2026 (CUD release)

Content update information

Financial period type: 12-Months (Annual)
Target industry type: Manufacturing, Services, Generic (excluding Financial Services)

Legislative IFRS changes for upcoming December 2026 financial year

Classification and Measurement of Financial Instruments – Amendments to MFRS 9 and MFRS 7
Contracts Referencing Nature-dependent Electricity – Amendments to MFRS 9 and MFRS 7
MFRS 18 – Presentation and Disclosure in Financial Statements
MFRS 19 – Subsidiaries without Public Accountability: Disclosures
Translation to a Hyperinflationary Presentation Currency – Amendments to MFRS 121
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture – Amendments to MFRS 10 and MFRS 128
Annual Improvements to MFRS Accounting Standards — Volume 11

Accounting law changes for December 2026 financial year

Early adoption for accounting standards

Classification and Measurement of Financial Instruments – Amendments to MFRS 9 and MFRS 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 2026 is still in the progress the final scope will be defined later, and it is likely that these changes will have impact on all entities in the scope.
Contracts Referencing Nature-dependent Electricity – Amendments to MFRS 9 and MFRS 7:
Effective for annual periods beginning on or after 1 January 2026. 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 MFRS 7 disclosure amendments must be applied when the MFRS 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 2026 is still in the progress the final scope will be defined later, but it is likely that these changes will have impact on all entities.
MFRS 18 – Presentation and Disclosure in Financial Statements:
Effective for annual periods beginning on or after 1 January 2027. MFRS 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.
note
This will be included in Good Group 2026 (the early addoption has been already included covered in 2025).
MFRS 19 – Subsidiaries without Public Accountability: Disclosures:
Effective for annual periods beginning on or after 1 January 2027. MFRS 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 MFRS 19, unless MFRS 19 or another MFRS accounting standard permits or requires otherwise.
note
Although the Final Good Group for 2026 is still in the progress the final scope will be defined later, but it is unlikely that these changes will have impact on all entities.
Translation to a Hyperinflationary Presentation Currency – Amendments to MFRS 121:
Effective for annual periods beginning on or after 1 January 2027. The amendments apply for annual reporting periods beginning on or after 1 January 2027 and earlier application is permitted.
If an entity's functional currency and presentation currency are the currency of a hyperinflationary economy (or are the currencies of different hyperinflationary economies) and it translates the results and financial position of foreign operations whose functional currency is that of a non hyperinflationary economy, then it is required to apply the amendments from the beginning of the annual reporting period in which it first applies the amendments. In addition, it restates the comparative amounts of its foreign operations included in the entity's previously issued financial statements by applying the general price index it applies to corresponding figures in accordance with paragraph 34 of MFRS 129.
note
Although this change is applicable as of 1 January 2027 and allows early adoption, it will not be in the scope of the Final Good Group for 2026.
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture – Amendments to MFRS 10 and MFRS 128:
In December 2015, the MASB decided to defer the effective date of the amendments until such time as it has finalized any amendments that result from its research project on the equity method. Early application of the amendments is still permitted and must be disclosed. The amendments must be applied prospectively.
note
Although the Final Good Group for 2026 is still in the progressthis likely to be out of scope of Good Group.
Annual Improvements to MFRS Accounting Standards — Volume 11:
The MASB's annual improvements process deals with non-urgent, but necessary, clarifications and amendments to MFRS. In July 2024, the MASB issued Annual Improvements to MFRS Accounting Standards — Volume 11. The following is the summary of the amendments from the Annual Improvements to MFRS Accounting Standards — Volume 11:
IFRS 1 First-time Adoption of International Financial Reporting Standards:
Hedge Accounting by a First-time Adopter – Paragraphs B5 and B6 of IFRS 1 have been amended to include cross references to the qualifying criteria for hedge accounting in paragraph 6.4.1(a), (b) and (c) of IFRS 9. These amendments are intended to address potential confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge accounting in IFRS 9. An entity applies the amendments for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.
IFRS 7 Financial Instruments: Disclosures:
Gain or Loss on Derecognition – The amendments update the language on unobservable inputs in paragraph B38 of IFRS 7 and include a cross reference to paragraphs 72 and 73 of IFRS 13 Fair Value Measurement. An entity applies the amendments for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.
Guidance on implementing IFRS 7 Financial Instruments: Disclosures:
Introduction – The amendments to paragraph IG1 of the Guidance on implementing IFRS 7 clarify that the guidance does not necessarily illustrate all the requirements in the referenced paragraphs of IFRS 7, nor does it create additional requirements.
Disclosure of Deferred Difference between Fair Value and Transaction Price – Paragraph IG14 of the Guidance on implementing IFRS 7 has been amended mainly to make the wording consistent with the requirements in paragraph 28 of IFRS 7 and with the concepts and terminology used in IFRS 9 and IFRS 13.
Credit Risk Disclosures – Paragraph IG20B of the Guidance on implementing IFRS 7 has been amended to simplify the explanation of which aspects of the IFRS requirements are not illustrated in the example.
IFRS 9 Financial Instruments:
Lessee Derecognition of Lease Liabilities – Paragraph 2.1 of IFRS 9 has been amended to clarify that, when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to apply paragraph 3.3.3 and recognise any resulting gain or loss in profit or loss. However, the amendment does not address how a lessee distinguishes between a lease modification as defined in IFRS 16 and an extinguishment of a lease liability in accordance with IFRS 9. An entity applies the amendments for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.
Transaction Price – Paragraph 5.1.3 of IFRS 9 has been amended to replace the reference to 'transaction price as defined by IFRS 15 Revenue from Contracts with Customers' with 'the amount determined by applying IFRS 15'. The use of the term 'transaction price' in relation to IFRS 15 was potentially confusing and so it has been removed. The term was also deleted from Appendix A of IFRS 9. An entity applies the amendments for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.
IFRS 10 Consolidated Financial Statements:
Determination of a De Facto Agent – Paragraph B74 of IFRS 10 has been amended to clarify that the relationship described in paragraph B74 is just one example of various relationships that might exist between the investor and other parties acting as de facto agents of the investor. The amendments are intended to remove the inconsistency with the requirement in paragraph B73 for an entity to use judgement to determine whether other parties are acting as de facto agents. An entity applies the amendments for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.
IAS 7 Statement of Cash Flows:
Cost Method – Paragraph 37 of IAS 7 has been amended to replace the term 'cost method' with 'at cost', following the prior deletion of the definition of 'cost method'. An entity applies the amendments for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.