10 Interpretations Committee Update

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Publication date
19 February 2026
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26 February 2026 Agenda Paper 10 OFFICIAL - PUBLIC UKEB UK Endorsement Board

Executive Summary

Project Type

Influencing

Project Scope

Various

Purpose of the paper

This paper is for noting. It provides updates to the Board about the work and decisions of the IFRS Interpretations Committee.

Summary of the Issue

The IASB considered and ratified the following IFRS Interpretations Committee agenda decisions at its January 2026 meeting:

  • Determining and Accounting for Transaction Costs (IFRS 9 Financial Instruments)1.
  • Embedded Prepayment Option (IFRS 9)2.

The IASB also considered the Updates to the Interpretation Committee's Agenda Decisions for IFRS 18 Presentation and Disclosure in Financial Statements3.

Out of these agenda decisions, the IASB decided to ratify the following decisions:

  • Disclosure of Revenues and Expenses for Reportable Segments (IFRS 8 Operating Segments).
  • Demand Deposits with Restrictions on Use Arising from a Contract with a Third Party (IAS 7 Statement of Cash Flows).
  • Subsequent Expenditure on Biological Assets (IAS 41 Agriculture).
  • Disclosure of Changes in Liabilities Arising from Financing Activities (IAS 7).
  • Physical Settlement of Contracts to Buy or Sell a Non-financial Item (IFRS 9).
  • Normal Operating Cycle (IAS 1 Presentation of Financial Statements).

Also related to Agenda Decisions for IFRS 18, the IASB agreed with the Interpretations Committee's recommendation to withdraw the Agenda Decision4 Income and Expenses arising on Financial Instruments with a Negative Yield – Presentation in the Statement of Comprehensive Income (IAS 39 Financial Instruments: Recognition and Measurement and IAS 1).

The IASB decided to defer reaching a decision on withdrawing the agenda decision Supply Chain Financing Arrangements–Reverse Factoring to a future meeting. The IASB also decided to undertake targeted outreach to identify any specific accounting matters that might arise from the recommended withdrawal of the agenda decision.

Questions for the Board

None

Recommendation

N/A

Appendices

N/A

Footnotes

  1. See pages 16-18 of the UKEB 29 January 2026 Agenda Paper 9: Appendix A: Interpretations Committee Agenda Items. ↩

  2. See pages 18-19 of the UKEB 29 January 2026 Agenda Paper 9: Appendix A: Interpretations Committee Agenda Items. ↩

  3. See pages 15-16 of the UKEB 29 January 2026 Agenda Paper 9: Appendix A: Interpretations Committee Agenda Items. ↩

  4. See pages 15-16 of the UKEB 29 January 2026 Agenda Paper 9: Appendix A: Interpretations Committee Agenda Items. ↩