ASCG comment letter on tentative agenda decisions taken by the IFRS IC in November 2025

On 29 January 2026, the ASCG has submitted its comment letter on tentative agenda decisions (TAD) taken by the IFRS Interpretations Committee in its November 2025 meeting.

As regards the tentative agenda decision on IFRS 18 Prestation and Disclosure in Financial Statements (Classification of Gains and Losses on a Derivative Managing a Foreign Currency Exposure), we agree with the IFRS IC’s view and the respective conclusions. Nevertheless, we explain out in our comment letter that the dividing line – on whether the derivative is used to manage a gross or a net position – is not sufficiently clear to us. Rather, we believe that in practice, entities always manage a net position when they enter into a derivative on the net position. The (opposite) case of managing a gross position – which would result into a classification in the operating category in accordance with paragraphs B74-B75 of IFRS 18 – appears, on the other hand, to be unrealistic and implausible.

Furthermore, we note out in our comment letter that the fact pattern assumed in the submission is described in the submission is very simplistic, whereas risk management strategies in practice are much more complex and often involve intragroup positions. In this regard, we note that the current tentative agenda decision interacts with an earlier tentative agenda decision on IFRS 18 on the classification of foreign exchange differences from an intragroup liability (or asset), taken by the IFRS IC in its September 2025 meeting. In our comment letter, we therefore reiterate our concern that income and expenses from a comprehensive group financing transactions (including foreign exchange differences on intragroup loans, and derivatives to manage such (net) foreign currency risk exposure) should be classified in a single category of the statement of profit or loss (we reported).

As regards the four remaining tentative agenda decisions taken by the IFRS IC in its November 2025 meeting:

• Scope of the Requirement to Disclose Expenses by Nature (IFRS 18),
• Assessment of a Specified Main Business Activity for the purposes of the Separate Financial Statements of a Parent (IFRS 18),
• Presentation of Taxes or Other Charges that are Not Income Taxes within the Scope of IAS 12 Income Taxes (IFRS 18), and
• Fair Presentation and Compliance with IFRS Accounting Standards (IAS 1),

we agree with the IFRS IC’s view and the respective conclusions.