9 December 2025To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IFRS INTERPRETATIONS COMMITTEETENTATIVE AGENDA DECISIONSComments to be received by 2 January 2026The IFRS Interpretations Committee (IC) works together with the International AccountingStandards Board to support the consistent application of IFRS Accounting Standards. They do soby, among other things, issuing narrow-scope amendments and IFRIC Interpretations, andpublishing agenda decisions to address application questions.If the IC decides that a standard-setting project should not be added to the work plan, it explainswhy in a tentative agenda decision, and requests comments within a period normally of 60 days. Anagenda decision explains why a standard-setting project has not been added to the work plan and,in many cases, includes explanatory material. Agenda decisions cannot add or changerequirements in IFRS Accounting Standards.At its November meeting, the IC discussed the following matters regarding IAS 1 Presentation ofFinancial Statements and IFRS 18 Presentation and Disclosure in Financial Statements, andtentatively decided not to add a standard-setting project to the work plan.
(1)Fair Presentation and Compliance with IFRS Accounting Standards (IAS 1) - whether an entityis required to comply with the requirement for fair presentation in paragraph 15 of IAS 1 if theentity applying paragraph 19 of IAS 1 departs from a requirement in an IFRS AccountingStandard.
(2)Classification of Gains and Losses on a Derivative Managing a Foreign Exchange Exposure(IFRS 18) – how an entity applies IFRS 18 to classify gains or losses arising from a derivativethat is used to manage the foreign currency exposure in its consolidated statement of profit orloss.
(3)Presentation of Taxes or Other Charges that are Not Income Taxes within the Scope of IAS 12Income Taxes (IFRS 18) – whether an entity applying IFRS 18 is permitted to present taxes orother charges that are not income taxes within the scope of IAS 12 in the ‘income tax expenseor income’ line item of the statement of profit or loss required by paragraph 75(a)(iv) of IFRS18 or in the income taxes category of the statement of profit or loss.In light of this discussion, the IC proposed additional updates to two IC's agenda decisions forIFRS 18 [November 2025] which it had previously proposed updates. The two agendadecisions are i) Presentation of payments on non-income taxes (IAS 1) and ii) Classification oftonnage taxes (IAS 12). The IC is asking for feedback only about the proposed updates andnot about other aspects of these two agenda decisions.
(4)Scope of the Requirement to Disclose Expenses by Nature (IFRS 18) – whether therequirements in paragraph 83 of IFRS 18 apply i) only when an entity presents operatingexpenses listed in paragraph 75(a)(ii) of IFRS 18 by function in the operating category of thestatement of profit or loss; or ii) when an entity presents any expense by function in theoperating category of the statement of profit or loss, including expenses listed in paragraph75(b)–(c) of IFRS 18.
(5)Assessment of a Specified Main Business Activity for the purposes of the Separate FinancialStatements of a Parent (IFRS 18) - how a parent applies IFRS 18 to assess, for the purpose ofits separate financial statements, whether it has a specified main business activity of investingin unconsolidated subsidiaries.The Financial Reporting Standards Committee of the Hong Kong Institute of Certified PublicAccountants is seeking comments on the above tentative agenda decisions by 2 January 2026 toallow your comments to be considered in developing its response. Comments should be supportedby specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.
Invitation to Comment on IFRS Interpretations Committee Tentative Agenda Decisions
下载原件9 December 2025To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IFRS INTERPRETATIONS COMMITTEETENTATIVE AGENDA DECISIONSComments to be received by 2 January 2026The IFRS Interpretations Committee (IC) works together with the International AccountingStandards Board to support the consistent application of IFRS Accounting Standards. They do soby, among other things, issuing narrow-scope amendments and IFRIC Interpretations, andpublishing agenda decisions to address application questions.If the IC decides that a standard-setting project should not be added to the work plan, it explainswhy in a tentative agenda decision, and requests comments within a period normally of 60 days. Anagenda decision explains why a standard-setting project has not been added to the work plan and,in many cases, includes explanatory material. Agenda decisions cannot add or changerequirements in IFRS Accounting Standards.At its November meeting, the IC discussed the following matters regarding IAS 1 Presentation ofFinancial Statements and IFRS 18 Presentation and Disclosure in Financial Statements, andtentatively decided not to add a standard-setting project to the work plan.
(1)Fair Presentation and Compliance with IFRS Accounting Standards (IAS 1) - whether an entityis required to comply with the requirement for fair presentation in paragraph 15 of IAS 1 if theentity applying paragraph 19 of IAS 1 departs from a requirement in an IFRS AccountingStandard.
(2)Classification of Gains and Losses on a Derivative Managing a Foreign Exchange Exposure(IFRS 18) – how an entity applies IFRS 18 to classify gains or losses arising from a derivativethat is used to manage the foreign currency exposure in its consolidated statement of profit orloss.
(3)Presentation of Taxes or Other Charges that are Not Income Taxes within the Scope of IAS 12Income Taxes (IFRS 18) – whether an entity applying IFRS 18 is permitted to present taxes orother charges that are not income taxes within the scope of IAS 12 in the ‘income tax expenseor income’ line item of the statement of profit or loss required by paragraph 75(a)(iv) of IFRS18 or in the income taxes category of the statement of profit or loss.In light of this discussion, the IC proposed additional updates to two IC's agenda decisions forIFRS 18 [November 2025] which it had previously proposed updates. The two agendadecisions are i) Presentation of payments on non-income taxes (IAS 1) and ii) Classification oftonnage taxes (IAS 12). The IC is asking for feedback only about the proposed updates andnot about other aspects of these two agenda decisions.
(4)Scope of the Requirement to Disclose Expenses by Nature (IFRS 18) – whether therequirements in paragraph 83 of IFRS 18 apply i) only when an entity presents operatingexpenses listed in paragraph 75(a)(ii) of IFRS 18 by function in the operating category of thestatement of profit or loss; or ii) when an entity presents any expense by function in theoperating category of the statement of profit or loss, including expenses listed in paragraph75(b)–(c) of IFRS 18.
(5)Assessment of a Specified Main Business Activity for the purposes of the Separate FinancialStatements of a Parent (IFRS 18) - how a parent applies IFRS 18 to assess, for the purpose ofits separate financial statements, whether it has a specified main business activity of investingin unconsolidated subsidiaries.The Financial Reporting Standards Committee of the Hong Kong Institute of Certified PublicAccountants is seeking comments on the above tentative agenda decisions by 2 January 2026 toallow your comments to be considered in developing its response. Comments should be supportedby specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.