ASCG comment letter on tentative agenda decisions taken by the IFRS IC in June 2026

On 7 August 2026, the ASCG has submitted its comment letter on tentative agenda decisions (TAD) taken by the IFRS Interpretations Committee (IFRS IC) in its June 2026 meeting.

As regards the TAD on IFRS 18 Presentation and Disclosure in Financial Statements (Classification of Income and Expenses when an Entity Has a Main Business Activity of Providing Financing to Customers), we disagree with the IFRS IC’s view and the respective conclusions reached on question 2 in the TAD. In our view, paragraph 66 of IFRS 18 can also be read that it applies only to the portion of liabilities that arise from transactions that involve only the raising of finance for which an entity cannot distinguish between those that relate to providing financing to customers and those that do not. Furthermore, we believe that this reading of paragraph 66 of IFRS 18 (which is described as ‘View B’ in the submission) also results in more useful information. Applying the IFRS IC’s TAD, by contrast, would result in income and expenses arising from all liabilities that arise from transactions that involve only the raising of financing being classified in the ‘operating’ category.

As regards the seven remaining tentative agenda decisions taken by the IFRS IC in its June 2026 meeting, we agree with the IFRS IC’s view and the respective conclusions.