Version 14 - September 2025 (CUD release)

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

Content update

Legislative updates

Amendments to PAS 1, Classification of Liabilities as Current or Non-current and Non-current liabilities with Covenants
Amendments to PFRS 16, Lease Liability in a Sale and Leaseback
Amendments to PAS 7 and PFRS 7, Disclosures: Supplier Finance Agreements
Amendments to PAS 21, Lack of Exchangeability
Amendments to PFRS 9 and PFRS 7, Classification and Measurement of Financial Instruments
Amendments to PFRS 9 and PFRS 7, Contracts Referencing Nature-dependent Electricity
Annual Improvements to PFRS Accounting Standards – Volume 11
PFRS 18, Presentation and Disclosures in Financial Statements
PFRS 19, Subsidiaries without Public Accountability: Disclosures
Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture.

Specifies the requirements for classifying liabilities as current or non-current
Clarifies the following:
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
The amendments must be applied retrospectively. 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.

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 recognize 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 January 1, 2024. Earlier application is permitted and that fact must be disclosed.
A seller-lessee applies the amendment retrospectively in accordance with PAS 8 to sale and leaseback transaction entered into after the date of initial application which is the beginning of the annual reporting period in which an entity first applied PFRS 16.

Specifies disclosure requirements 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 January 1, 2024. Early adoption is permitted but will need to be disclosed.

Specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking.
When applying the amendments, an entity cannot restate comparative information.

Clarifies that a financial liability is derecognized on the ‘settlement date’, for example, when the related obligation is discharged, cancelled, expires or the liability otherwise qualifies for derecognition. It also introduces an accounting policy option to derecognize financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met.
Clarifies how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.
Clarifies the treatment of non-recourse assets and contractually linked instruments.
Requires additional disclosures in PFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event and equity instruments classified at fair value through other comprehensive income.
Early adoption is permitted for amendments that relate to the classification of financial assets plus the related disclosures and apply the other amendments later.

Updates the ‘own-use’ requirements for in-scope contracts. The sale of unused nature-dependent electricity will be in accordance with an entity’s purchase or usage requirements, if specified criteria are met. The amendments relating to this must be applied retrospectively without the requirement of restated prior periods.
➢ Amends the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts. The amendments will allow an entity to designate a variable nominal volume of forecast electricity transactions as a hedged item, if specified criteria are met. The amendments relating to this must be applied prospectively to new hedging relationships designated on or after the date of initial application.
Added new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows. PFRS 7 has been amended to require specific disclosures relating to contracts that have been excluded from the scope of PFRS 9 as a result of the amendments.

The amendments are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversight or conflicts between the requirements in the Accounting Standards. The following is the summary of the Standards involved and their related amendments.
Amendments to PFRS 1, Hedge Accounting by a First-time Adopter
The amendments included in paragraphs B5 and B6 of PFRS 1 cross references to the qualifying criteria for hedge accounting in paragraph 6.4.1(a), (b) and (c) of PFRS 9. These are intended to address potential confusion arising from an inconsistency between the wording in PFRS 1 and the requirements for hedge accounting in PFRS 9.
Amendments to PFRS 7, Gain or Loss on Derecognition
The amendments updated the language of paragraph B38 of PFRS 7 on unobservable inputs and included a cross reference to paragraphs 72 and 73 of PFRS 13.
Amendments to PFRS 9
Lessee Derecognition of Lease Liabilities The amendments to paragraph 2.1 of PFRS 9 clarified that when a lessee has determined that a lease liability has been extinguished in accordance with PFRS 9, the lessee is required to apply paragraph 3.3.3 and recognize any resulting gain or loss in profit or loss.
Transaction Price The amendments to paragraph 5.1.3 of PFRS 9 replaced the reference to ‘transaction price as defined by PFRS 15 Revenue from Contracts with Customers’ with the amount determined by applying PFRS 15’. The term ‘transaction price’ in relation to PFRS 15 was potentially confusing and so it has been removed. The term was also deleted from Appendix A of PFRS 9.
Amendments to PFRS 10, Determination of a ‘De Facto Agent’
The amendments to paragraph B74 of PFRS 10 clarified that the relationship described in 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.
Amendments to PAS 7, Cost Method
The amendments to paragraph 37 of PAS 7 replaced the term ‘cost method’ with ‘at cost’, following the prior deletion of the definition of ‘cost method’.

Permits eligible entities to choose to apply the standard's reduced disclosure requirements while continuing to adhere to the recognition, measurement, and presentation requirements of other IFRS accounting standards.
The application of the standard is optional for eligible entities.
Early adoption is permitted, and this must be disclosed. In the 1st period, the entity is required to align the disclosures in the comparative period with those included in the current period under IFRS 19, unless IFRS 19 or another IFRS accounting standard permits or requires otherwise.

Amendments to PFRS 10 and PAS 28
Addresses the conflict between PFRS 10 and PAS 28 regarding the loss of control of a subsidiary when it is sold or contributed to an associate or joint venture.
The amendments clarify that a full gain or loss is recognized when a transfer to an associate or joint venture involves a business as defined in PFRS 3.
Any gain or loss resulting from the sale or contribution of assets that doesn’t constitute a business, however, is recognized only to the extent of unrelated investors’ interests in the associate or joint venture.
The amendments must be applied prospectively. Early application is permitted and must be disclosed.