Key IFRS Amendments Effective in 2026: What Finance Teams Must Address

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Each year the IASB issues targeted amendments through its annual improvements cycle. For financial periods beginning 1 January 2026, several changes take effect that require updates to accounting policies, system configurations, and financial statement disclosures. Identifying these early — not at year-end — is the mark of a well-governed finance function.

IAS 21 Amendment: Lack of Exchangeability

The most significant 2026 amendment is the change to IAS 21 The Effects of Changes in Foreign Exchange Rates. The amendment addresses how entities account for transactions and balances when a currency cannot be exchanged into another — a situation directly relevant to operations in DRC, Ethiopia, Zimbabwe, and other markets with de facto exchange controls.

Under the amendment, if a currency is not exchangeable, the entity must use an estimated exchange rate and disclose the restriction and its financial impact. This formalises practice that many OHADA-jurisdiction entities had handled inconsistently.

• Effective: Annual periods beginning on or after 1 January 2025 (mandatory from 2026)
• DRC, Ethiopia, and Zimbabwe operations must reassess functional currency disclosures
• New quantitative and qualitative disclosure requirements on restrictions and sensitivity

IFRS 10 / IAS 28: Sale or Contribution of Assets

The long-pending amendment addressing the conflict between IFRS 10 Consolidated Financial Statements and IAS 28 has been finalised. When a parent loses control over a subsidiary and the transaction involves the sale or contribution of a ‘business’ as defined under IFRS 3, a full gain or loss must be recognised.

This has significant implications for restructuring transactions, group reorganisations, and partial divestments — common in African holding structures and OHADA corporate groups.

IAS 7 / IFRS 7: Supplier Finance Disclosures

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures require entities to disclose information about supplier finance arrangements. These arrangements can mask true working capital positions and liquidity risk.

Finance teams should review all supplier financing, reverse factoring, and early payment programmes to assess whether new disclosures are required in 2026 annual financial statements:

• Name and key terms of the supplier finance arrangement
• Carrying amounts and statement of financial position line items
• Ranges of payment due dates for suppliers and financing entities

Preparing Your 2026 Annual Accounts

The most common mistake is failing to identify applicable amendments until the year-end preparation process — creating last-minute accounting policy changes and disclosure gaps. We recommend an IFRS amendment review in Q1 2026 to identify all applicable changes, update accounting policies, and assess ERP or system impacts.

ValidWave Consulting provides technical IFRS advisory services to ensure financial statements reflect current standards and best practice across OHADA and international reporting frameworks.