Middle East accounting newsletter

Banks and Insurers | 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 banks and insurers, as they get into the detail and think about how the new requirements apply to their specific circumstances.

Banks and insurers will be impacted, whether it be the more structured income statement, disclosed and audited management-defined performance measures (MPMs) or enhanced aggregation and disaggregation of information. The impact may depend on current presentation practices.

Read our article on Banks and Insurers to find out more.

Uncertain times | How clear is your corporate reporting?

In recent years, corporate reporting has been dominated by the effects of the pandemic, energy price shocks, tariffs, inflation and supply chain disruption. The potential impacts on financial reporting include valuation, impairment and, ultimately, going concern.

In his new video, Brian O’Donovan explains that it is not enough to rely on generalities when making disclosures about market uncertainties: a key to being clear is to be specific.

Bookmark our digital hub on Financial reporting in uncertain times for more resources to help you provide clarity in your financial statements.

Airlines: Financial reporting in uncertain times

Heightened uncertainty, including geopolitical developments, continues to pose challenges for airlines. It has disrupted air passenger transport, driven major airspace and operational constraints, and contributed to an oil supply shock that has increased fuel costs and heightened concern over future supply.

Airlines have responded by making difficult operational and commercial decisions – including rerouting around disrupted airspace, reducing capacity, grounding aircraft, cancelling services, and revisiting pricing and schedules.

Investors and regulators are therefore looking for clarity in annual reports. They want to know how your company is affected, how you address the challenges, what judgements, estimates and assumptions you make, and how you have reflected it all in the financial statements.

Therefore, you need to be clear in your financial reporting. Use our guide on reporting considerations for the airline sector, along with other resources on our Uncertain times hub.

Accounting for cryptoassets – Key questions answered

Companies may use cryptoassets in different ways and accounting for them can be challenging, because there is no specific guidance in IFRS® Accounting Standards.

Our new digital guide addresses how to determine the appropriate accounting for common uses of cryptoassets, including:
• holding them (e.g. store of value);
• making payments (e.g. with stablecoins); and• securing blockchains (e.g. by crypto mining or staking activities).

Tariff refunds | Assess the impacts

Some companies have paid tariffs on US imports and may be entitled to a refund. For those that have not received a refund, uncertainty exists over whether and when they would receive it. For those that have, uncertainty may exist over whether they would need to return the amounts received.

The situation continues to evolve and judgement is required to determine the impact on your financial reporting.

Clear and company-specific disclosures about potential future refunds are critical to providing users of financial statements with relevant information.

Read our article to find out more.

Updated observations on insurers’ reporting

Our latest analysis of 55 insurers from across the globe shows a growing maturity in the application of IFRS 17 Insurance Contracts, with insurers refining their accounting policies and disclosures. In line with prior years, our analysis focused on the accounting policies, significant judgements and disclosures under IFRS 17 and IFRS 9 Financial Instruments.

More insurers disclosed changes to accounting policies and estimates related to IFRS 17 in the 2025 annual financial statements, signaling maturity in their application of the standard. However, differences in the quality and detail of insurers’ disclosures, and their differing accounting policy choices and estimates, make comparability more challenging for users of financial statements.

Read our report to explore the latest observations from insurers’ 2025 IFRS 17 reporting.

IFRS 20 | A new IFRS® accounting standard for rate regulated companies

Rate regulation, common in the utility and transport sectors, can have a significant effect on a company’s long-term financial performance. However, until now, IFRS Accounting Standards – unlike some national GAAPs – have not included comprehensive guidance on the accounting impacts of rate regulation.

This gap is now addressed by IFRS 20 Regulatory Assets and Regulatory Liabilities, which replaces IFRS 14 Regulatory Deferral Accounts. 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.

This accounting model aligns the total income recognised in a period under IFRS Accounting Standards with the total allowed compensation the company is entitled to earn for regulatory goods or services supplied in the period. The model is intended to provide users with more complete financial information about companies subject to rate regulation.

Read our article to find out more about the new accounting standard. Consider whether you are required to apply IFRS 20 and, if so, what the implications will be for your company.

IFRIC agenda decisions | IFRS 18 and MPMs

In its June meeting, the IFRS® Interpretations Committee again devoted much of its time to IFRS 18 Presentation and Disclosure in Financial Statements, which is effective for 2027. For the first time, the Committee has issued tentative agenda decisions about MPMs. These new decisions will be important for companies as they plan their communications with investors.

In our latest video, part of a series on key discussions by the Committee, Brian O’Donovan summarises the discussions on MPMs and gives an overview of the other IFRS 18-related topics discussed.

The IFRS Foundation also publishes updates of the Committee’s meetings.

IFRS Standards | Revisions finalised

The Due Process Handbook of the IFRS Foundation outlines the processes to follow when setting and maintaining IFRS Accounting Standards.

The Trustees of the IFRS Foundation have updated the Handbook to:

• specify formally the due process for setting and maintaining IFRS Sustainability Disclosure Standards;
• introduce processes to drive connectivity between financial and sustainability reporting; and
• provide clarifications and enhancements in other areas.

Read our article to find out more.

Risk mitigation accounting | IASB extends consultation period

The deadline for comments on a proposed new model for risk mitigation accounting has been extended by four months – to November 2026.

In its May meeting, the International Accounting Standards Board agreed the extension to align the consultation and field testing periods for the proposals.

The new accounting model could have significant impacts for banks and insurers that manage repricing risk dynamically.

Read our article and detailed guide, which offers our insights and analysis on the proposed new model.

Reporting on nature | Update on the ISSB’s April discussions

Companies can expect guidance on reporting nature-related topics under IFRS® Sustainability Disclosure Standards in a future IFRS practice statement.

The International Sustainability Standards Board (ISSB) decided in April 2026 to provide voluntary guidance as a practice statement rather than a mandatory disclosure standard.

The ISSB also decided to provide guidance on location-specific information and engagement with indigenous peoples, local communities and affected stakeholders.

Read our article to find out more.

ISSB decisions on identifying nature-related risks and opportunities

Companies can expect additional guidance on using scenario analysis and identifying risks and opportunities as part of the proposed IFRS® practice statement on nature-related disclosures.

The ISSB agreed in May 2026 that it will propose this guidance as part of its ongoing development of new requirements and guidance for nature-related disclosures.

Read our article to find out more.

Penultimate ISSB discussion on the draft practice statement

Companies can now preview selected preliminary guidance before the release of the exposure draft on the IFRS® practice statement on nature-related disclosures.

At its June 2026 meeting to discuss the upcoming practice statement, the ISSB also decided that companies already applying Taskforce on Nature-related Financial Disclosures (TNFD) recommendations would be permitted to build on their existing nature-related metrics for ISSB reporting purposes.

Read our article to find out more.