IFRS Interpretations Committee - Tentative Agenda Decision: Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18)
Project Type:
Influencing
Status:
Completed
Milestone:
Project Closure
Completed Date: 30 January 2026
In September 2025 the IFRS Interpretations Committee (the Committee) published its Tentative Agenda Decision (TAD) Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18). Our response to the Committee was submitted on 25 November 2025.
Background
The Committee received a request to clarify how an entity applying paragraph B65 of IFRS 18 Presentation and Disclosure in Financial Statements classifies a foreign exchange difference if the income and expenses from the intragroup monetary liability (or asset) that gave rise to the foreign exchange difference have been eliminated on consolidation.
The request for clarification submitted to the Committee presented five alternative views. The Committee concluded that three of those views were not reasonable readings of paragraph B65 of IFRS 18.
On the remaining alternative views presented in the submission, Committee members’ views were split. Notwithstanding the different views of its members, the Committee tentatively decided not to add a standard-setting project to its work plan.
Outreach
As noted in the Project Initiation Plan (see below), due to the short timeline for this project, our stakeholder outreach focused on engagement with UKEB Advisory Group members.
Final Comment Letter
On 25 November 2025, the UKEB submitted its Final Comment Letter to the IFRS Interpretations Committee Tentative Agenda Decision: Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18).
The UKEB Final Comment Letter recommends enhancing the clarity of the Committee’s conclusions in the TAD, but agrees that, on balance, a standard setting project should not be added to the IASB work plan at this stage of the transition to IFRS 18 Presentation and Disclosure in Financial Statements.
Thank you to all stakeholders that provided feedback.
UKEB Meetings
UKEB Meetings
- 29 January 2026: Items for Noting, Appendix D. Due Process Compliance Statement for noting.
- 20 November 2025: IASB General Update, Appendix A. Project Initiation Plan, Final Comment Letter and [draft] Due Process Compliance Statement.
- 30 October 2025: IASB General Update, Appendix B.
- 25 September 2025: IASB General Update, Appendix E.
Timeline
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3
Project Closure
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The UKEB published its Due Process Compliance Statement on 30 January 2026.
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2
Final Documents
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The UKEB submitted its Final Comment Letter to the Committee on 25 November 2025.
The UKEB published its Final Comment Letter on 3 December 2025.
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1
Initiation
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The UKEB published its Project Initiation Plan on 3 December 2025.