Navigating IFRS and BE GAAP

Our recent webinar examined key developments in IFRS Accounting Standards and their impact on financial reporting. We provided an overview of newly effective and upcoming requirements, as well as annual improvements and new standards that will reshape presentation and disclosure practices from 2027. Additionally, we reviewed IFRIC agenda decisions, focusing on classification challenges under IFRS 18.

We discussed ESMA 2025 enforcement priorities, emphasizing disclosures on geopolitical risks, segment reporting, and readiness for IFRS 18.

Finally, we provided a BE GAAP update, including recent opinions and draft revisions by the Commission of Accounting Norms. These developments underscore the importance of proactive planning to ensure compliance and transparency in an evolving regulatory landscape.

During the webinar, we provided an overview of the newly effective and upcoming requirements and reviewed some relevant projects still on the International Accounting Standards Board’s (IASB) work plan.

We also provided an update on which economies are considered hyperinflationary economies when applying IAS 29 Financial Reporting in Hyperinflationary Economies. Hyperinflationary accounting under IAS 29 is relevant for the:

• Financial statements of companies reporting under the Accounting Standards whose functional currencies are those of hyperinflationary economies; and
• Consolidated financial statements of groups reporting under the Accounting Standards with foreign operations (e.g., a subsidiary, associate, or joint arrangement) whose functional currencies are those of hyperinflationary economies.

• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability, effective for reporting periods starting on or after 1 January 2025 and Translation to a Hyperinflationary Presentation Currency, effective for reporting periods starting on or after 1 January 2027);
• Several amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS 7 Financial Instruments: Disclosures, IFRS 10 Consolidated Financial Statements, and IAS 7 Statement of Cash Flows as part of the annual improvements to the Accounting Standards (effective for reporting periods starting on or after 1 January 2026);
• Amendments to IFRS 9 and IFRS 7 in relation to contracts referencing nature-dependent electricity (effective for reporting periods starting on or after 1 January 2026); and
• The new IFRS 18 Presentation and Disclosure in Financial Statements and IFRS 19 Subsidiaries without Public Accountability: Disclosures standards which are set to become effective on 1 January 2027, with IFRS 18 focusing on more structured income statements and enhanced disclosures.

During the webinar we provided an overview of the final IFRIC agenda decisions from 2025 and discussed one tentative agenda decision in relation to IFRS 18. The last one being particularly interesting as there are ongoing discussions about the classification of foreign exchange differences from intragroup monetary liabilities under IFRS 18, with committee members split between two main views on classification.

In October 2025 the European Securities and Markets Authority (ESMA), the European financial markets regulator and supervisor, has outlined the European Common Enforcement Priorities (ECEP) for the 2025 annual financial reports of listed issuers.

The focus areas for financial statements prepared in accordance with IFRS Accounting Standards are as follows:

ESMA expects companies to provide relevant company-specific information on how geopolitical risks and uncertainties and the knock-on impacts of these (e.g., trade frictions, volatility in energy and commodity prices, and supply chain disruptions) affect their financial position and performance, and the judgements and estimates they have made in preparing their financial statements. 

ESMA observes that geopolitical uncertainties and climate-related matters could cause changes in:

• operating segments;
• applying the aggregation criteria for reportable segments; and 
• disaggregation disclosures provided under IFRS 15 Revenue from Contracts with Customers.

ESMA highlights the IFRIC’s agenda decision Disclosure of Revenues and Expenses for Reportable Segments issued in July 2024 and recommends companies carefully review their disclosures under IFRS 8 Operating Segments, as well as the judgements made when determining which items of income or expense to disclose for each reportable segment. In applying these judgements, ESMA emphasizes that companies need to consider both the principles of materiality in IAS 1 and their specific facts and circumstances, including but not limited to those circumstances described in paragraph 98 of IAS 1.

ESMA also reminds companies of the importance of providing clear entity-wide disclosures under IFRS 8 on geographical areas and major customers in the current geopolitical environment.

ESMA urges companies to start assessing the impact of IFRS 18 on their financial statements, reporting systems and communications. ESMA’s focus areas include aggregation and disaggregation of information, management-defined performance measures (MPMs), and the presentation of financial performance.

During the webinar we also provided an overview of the published opinions by the Commission of Accounting Norms in the course of 2025.

In addition, it should be noted that, as of the end of April 2025, the Commission has issued numerous draft opinions aimed at updating the BCC* references to BCAC** references, without changing the content of the opinions.