As we enter the final quarter of 2026, we are pleased to bring to you our Q3 Accounting Newsletter, featuring key developments shaping the financial and sustainability reporting landscape.
In this edition, we highlight the 23rd edition of Insights into IFRS, offering practical guidance on key reporting topics, including IFRS 18. This edition also features new IFRS 18 guidance for telcos, first impressions on IFRS 20, an updated overview of IFRS 16, alongside with potentially important amendments in IAS 28 and recent IFRIC discussions.
We also explore the evolving sustainability reporting agenda, including our new IFRS Sustainability handbook, nature-related reporting, developments in GHG emissions reporting and proposed requirements for certain non-EU companies under ESRS.
We hope these insights help you stay ahead of emerging requirements and navigate the changes ahead.
Insights into IFRS | 23rd edition
Heightened global uncertainty is impacting different businesses in different ways. Users of your reports need a clear and connected story that helps them understand:
• the specific challenges and opportunities your company is facing;
• how you are responding; and
• what judgements, estimates and assumptions you are making.
Insights into IFRS is here to help you tell your own story. This 23rd edition includes our up-to-date guidance on key aspects of financial reporting, including the upcoming changes required by IFRS 18 – the new presentation accounting standard.
To learn more, read our article.
How to get your copy of Insights
Insights into IFRS is available as an e-book on ProViewTM. Speak to your usual KPMG contact to order your copy.
And you can download a copy of Insights into IFRS: An overview, which provides a high-level briefing for audit committees and boards.
Telcos | Are you ready for IFRS 18?
IFRS 18 Presentation and Disclosure in Financial Statements is effective from 1 January 2027 and applies retrospectively, with comparatives restated.
Our new IFRS 18 guide highlights the key industry-specific impacts for telecommunication companies (telcos), as they get into the detail and think about how the new requirements apply to their specific circumstances.
Telcos will be impacted, whether it be the more structured income statement, disclosed and audited MPMs or enhanced aggregation and disaggregation of information.
The impact may depend on current presentation practices.
Read our article to find out more.
IFRS 16 | Our updated overview publication
Some years on from the adoption of IFRS 16 Leases, many of its original implementation challenges continue to raise application issues. These include deciding whether a transaction is, or contains, a lease and determining whether particular lease payments are fixed or variable in nature.
Meanwhile, adopting new processes or new technologies (e.g. those relating to renewable energy and AI) are creating new challenges for companies.
Our updated publication IFRS 16 – An overview provides you with examples and insights to help you understand the standard’s requirements and their impacts on your financial statements. If you are looking for a practical overview of IFRS 16, or just a refresher, you’ve come to the right place.
Fair value option in IAS 28 | IASB issues targeted amendments ahead of IFRS 18
The way companies account for their investments in associates and joint ventures impacts how they classify the related income and expenses in the statement of profit or loss. As companies prepare to transition to IFRS 18 Presentation and Disclosure in Financial Statements, questions have been raised about who can apply the fair value option in IAS 28 Investments in Associates and Joint Ventures.
Under the targeted amendments issued by the International Accounting Standards Board, more companies may now be eligible to measure investments in associates and joint ventures at fair value through profit or loss.
A company applies the amendments to IAS 28 when it first applies IFRS 18. IFRS 18 transitional requirements allow eligible companies to elect the fair value option for their investments in associates and joint ventures on initial application.
Companies should act now to assess their eligibility. Eligible companies should also assess the related presentation impacts when deciding whether to take advantage of the one-time opportunity to elect the fair value option on transition to IFRS 18.
First Impressions – IFRS 20 | Our detailed insights and analysis
IFRS 20 Regulatory Assets and Regulatory Liabilities is here.
IFRS 20 introduces a new accounting model under which a company subject to rate regulation that meets the scope criteria recognises regulatory assets and regulatory liabilities.
Our First Impressions publication provides detailed insights, using a step-by-step approach and illustrative examples to show how companies might apply IFRS 20.
Consider whether you are required to apply IFRS 20 and, if so, what the implications will be for your company.
IFRIC agenda decisions | Discussions on new and existing requirements
In its September meeting, the IFRS® Interpretations Committee discussed three new technical issues. One relates to IFRS 18 Presentation and Disclosure in Financial Statements. The other two address existing requirements in IFRS 9 Financial Instruments and IAS 16 Property, Plant and Equipment. All three discussions are important because they address practical application questions on new and existing requirements.
In our latest video, part of a series on key discussions by the Committee, Volker Specht summarises what was covered.
The IFRS Foundation also publishes updates of the Committee’s meetings.
IFRS 9 and IFRS 7 – Review of hedge accounting and related disclosure requirements
To understand whether they are delivering their intended outcomes, the International Accounting Standards Board (IASB) is reviewing the hedge accounting requirements in IFRS 9 Financial Instruments and the related disclosures in IFRS 7 Financial Instruments: Disclosures.
• the requirements provide a clear basis to apply them appropriately and consistently, and to make appropriate judgements;
• the hedge accounting disclosures provide useful information, and
• the costs and benefits of applying the requirements are reasonable.
Read our article and have your say by 26 January 2027.
IFRS Sustainability handbook | Discover our new guide
As companies navigate an uncertain and evolving landscape, they are prioritizing risk mitigation, revenue growth and resilience.
Recognizing this reality, a growing number of jurisdictions are moving towards implementing IFRS® Sustainability Disclosure Standards – some on a voluntary basis, others through mandatory requirements.
At the same time, decision-makers need clear, connected and decision-useful information.
Our IFRS Sustainability handbook combines practical guidance, examples and our insights. Together with our IFRS Sustainability toolkit resources, it can help you navigate the requirements with confidence and tell your own story.
Reporting on nature | Final drafting begins
With the deliberation phase now complete, the International Sustainability Standards Board (ISSB) will work towards issuing a draft practice statement in October 2026 for public comment.
At its July 2026 meeting, the ISSB also published its assessment of the expected costs and benefits of the proposals.
Proposals for a consolidated standard on GHG emissions reporting
Corporate greenhouse gas (GHG) reporting is set for significant change as the GHG Protocol (GHGP) and the International Organization for Standardization (ISO) plan to combine the GHGP and ISO corporate GHG reporting standards into a single, co-branded standard by the end of 2028.
This could mark an important shift, with the GHGP’s workplan integrating and building on the work done to date to overhaul the GHGP standards. By incorporating the Actions and Market Instruments (AMI) workstream, the proposed new standard could also significantly broaden the information companies report.
Public consultation on the new standard is expected in Q2 2027. During this period of development, companies will continue to report GHG emissions under the current standards.
Read our article.
ESRS for non-EU companies | Navigating the ESRS-40a proposals
From 2028, non-EU companies and groups with significant operations in the EU will need to provide impact information for their entire global group in their sustainability reporting. An estimated 1,200 companies1 could be impacted.
The proposed requirements, which are set out in the so-called European Sustainability Reporting Standards for certain non-EU companies (ESRS-40a), are open for comment until 31 October 2026.
Read our guide to better understand the proposals and their potential reporting implications, and have your say.
1EFRAG’s (the EU’s advisory group on corporate reporting) Sustainability Reporting Board public meeting held on 3 June 2026.
Contact us
Muhammad Tariq
Aram Asatryan
Head of Department of Professional Practice
Rohit Rajvanshi
Fahad Aldossari
Partner, Head of Audit – Riyadh
