The Monthly Close: October 2026
What changed in IFRS and financial reporting regulation between September and mid-October 2026, and what does it mean for the December year-end?
The Monthly Close is our monthly round-up. It covers what the IASB, the IFRS Interpretations Committee, the EU and the regulators did in the period, in the order we think it matters to someone closing a December 2026 year-end.
This edition covers 1 September to 18 October 2026. The IASB meets again on 27 and 28 October, after our cut-off; those decisions will appear in the November edition.
Lead: ESMA sets the checklist for 2026 annual reports
ESMA published its European common enforcement priorities for 2026 annual reports on 13 October. The two IFRS priorities are geopolitical risks and uncertainties, and restructuring.
Under geopolitical risk, ESMA points to liquidity maturity analyses under IFRS 7, restricted cash, covenant disclosures, Level 3 fair values, and the extension of the one-year period for assets held for sale. Under restructuring, it points to restructuring provisions under IAS 37, termination benefits under IAS 19, and debt modifications under IFRS 9, where it stresses that the 10% quantitative test is not the end of the assessment. Outside the priorities, it expects 2026 financial statements to give entity-specific information on the expected impact of IFRS 18.
Why it matters: national enforcers, including IAASA, use these priorities when they select and review annual reports. Auditors should expect them to shape review files for December 2026 accounts. ESMA statement
IFRS 18: ten weeks to go
IFRS 18 applies to annual periods beginning on or after 1 January 2027, and it applies retrospectively, so the 2026 figures being closed now are next year's restated comparatives. It was endorsed in the EU in February 2026.
The Interpretations Committee is still answering questions on it. At its September meeting it published a tentative agenda decision on which assets generate a return "individually and largely independently" of the entity's other resources, which drives the investing category. In its tentative view, investments in debt or equity instruments would typically meet that description, while debt instruments arising from supplying goods or services to customers typically would not. Comments are due by 30 November 2026.
Seven IFRS 18 tentative decisions from June, on topics including management-defined performance measures and public communications, cash and cash equivalents, and subtotal labels, closed for comment on 9 September and are awaiting finalisation.
Why it matters: the investing category is where many mapping exercises are least settled. Final versions of the June decisions may arrive only weeks before the first IFRS 18 year-end. IFRIC Update, September 2026
IFRIC: two more tentative decisions, and one sent to the IASB
The September meeting produced two further tentative agenda decisions, also open until 30 November 2026.
IAS 16, residual value: residual value reflects expected future developments only to the extent that they affect amounts obtainable at the reporting date. Effects that would only change future prices, such as general inflation, are excluded.
IFRS 9, selling an equity investment held at fair value through other comprehensive income: entities generally recognise in other comprehensive income any difference between fair value at disposal and the consideration received. The Committee found no material diversity in practice and does not propose a standard-setting project.
The Committee also concluded its discussions on reassessment of control under IFRS 10 and passed the decision to the IASB, which is expected to consider it at its October meeting. The March tentative decision concerned a governing document amended in a way that could change the investee's relevant activities and the rights over them. The Committee observed that entities reassess control in that situation (IFRS 10.8) and found no diversity in practice. If the Board does not object, the final decision will be published.
Why it matters: the residual value decision bites on fleet and property depreciation reviews this year-end. The IFRS 10 decision matters to anyone with funds or special purpose vehicles whose documents change, which is also the theme of this month's lead Unaddressed! post.
IASB: the equity method rewrite goes to ballot
At its 22–23 September meeting the IASB decided unanimously to issue a revised IAS 28 without re-exposing it, although one member intends to dissent from the standard itself, and started the balloting process. The tentative effective date, supported by nine of the twelve members, is annual periods beginning on or after 1 January 2029, with early application permitted, assuming the standard is issued in the first half of 2027.
At the same meeting the Board agreed to publish an exposure draft amending IFRS 18 for taxes other than income tax: government charges that directly substitute for income tax would be classified in the income taxes category. The exposure draft is expected in the fourth quarter of 2026, with a 120-day comment period.
Why it matters: the IAS 28 revision is the biggest change to equity accounting in years, and groups with material associates should start reading the final text when it appears. The tax exposure draft matters to anyone mapping levies and similar charges for IFRS 18 now. IASB Update, September 2026
IASB: hedge accounting under review
On 28 September the IASB published a request for information for its post-implementation review of IFRS 9 hedge accounting and the related IFRS 7 disclosures. Comments are due by 26 January 2027.
Comments on the Risk Mitigation Accounting exposure draft also remain due by 30 November 2026, after the IASB extended the deadline in May.
Why it matters: this is the opportunity to put practical problems on record, for example with documentation, rebalancing or the disclosures. Project page
EU endorsement pipeline
IFRS 19 and its 2025 amendments: the Accounting Regulatory Committee voted in June and the draft Commission Regulation went to the Council in July. The draft applies from financial years beginning on or after 1 January 2027 and treats EU public-interest entities as publicly accountable. We had not found it in the Official Journal by 18 October.
IAS 21, translation to a hyperinflationary presentation currency: voted on in July and expected to be endorsed in the fourth quarter.
IAS 28, the fair value option amendments issued in June: the Accounting Regulatory Committee voted in favour on 21 September, and they now go through the scrutiny period.
Why it matters: once adopted, the IFRS 19 provision on public-interest entities will settle eligibility for Irish subsidiaries that are public-interest entities, such as credit institutions, insurers and entities with listed securities. EFRAG endorsement status
Ireland: IAASA's observations and two revised auditing standards
On 22 September IAASA published its observations on 2026 corporate reports. The themes overlap substantially with ESMA's: geopolitical risk, including covenants, liquidity and fair value, impairment, restructuring provisions, IFRS 18 transition, IFRS 19, segment disclosures and translation into a hyperinflationary presentation currency under IAS 21.
On 29 September it issued revised ISA (Ireland) 240 on fraud and ISA (Ireland) 570 on going concern, effective for audits of periods beginning on or after 15 December 2026.
Why it matters: preparers have IAASA's view of what to get right before the year-end; auditors have two revised standards to plan for in 2027 engagements. IAASA observations
Across the water
The FRC published its Annual Review of Corporate Reporting on 29 September and two thematic reviews on 14 October. Its review of financial instruments reporting by corporates found no material IFRS 9 issues but room to improve IFRS 7 disclosures on hedging, expected credit losses and factoring. FRC thematic reviews
Dates for the diary
Date | What |
|---|---|
27–28 Oct 2026 | IASB meeting |
30 Nov 2026 | IFRIC comments due |
30 Nov 2026 | Risk mitigation comments due |
15 Dec 2026 | Revised ISAs (Ir.) apply |
1 Jan 2027 | IFRS 18 effective |
26 Jan 2027 | Hedge accounting RFI closes |
The ISA (Ireland) date applies to audits of periods beginning on or after 15 December 2026, which for most entities means December 2027 year-ends.
Work it through with our tools
With ten weeks to go, the IFRS 18 Transition Tool moves a real set of accounts from IAS 1 to IFRS 18, classifies income and expenses into the new categories and builds the subtotals. It is free with a member account.
IFRS 18 in the Learning Hub: the categories, the subtotals and management-defined performance measures.
Year-End 2026 Reporting Update: our CPD course for this year-end.
Disclosure Review: check your 2026 notes against the requirements, including the ones ESMA has flagged.
The Monthly Close returns in November. If something important happened that we missed, tell us through Suggest a question.
Sources are linked in each section. Dates and decisions are as reported by the bodies concerned up to 18 October 2026.
