Hey everyone,
Believe it or not, IFRS 18 isn’t the main focus of this issue of Reporting Period. Isn’t that a nice change from the recent IFRS 18-centric accounting news cycle? So, what’s on the menu, you ask? Well, we’ve got:
- Battery energy storage system arrangements,
- Tax developments with IAS 12 implications,
- Review of annual reports of insurance companies,
- … and OK, a little bit of IFRS 18 too 😉
Let’s dive in.
Technical Publications
Battery energy storage system arrangements
In essence, a battery energy storage system (BESS) stores electricity, either from the grid or directly from a generator, in rechargeable batteries for later use. When electricity supply from generators exceeds demand, battery operators buy electricity to charge the BESS at a relatively low price. They then discharge the batteries and sell the electricity at a higher price when demand is high.
It’s becoming increasingly common for companies to enter into long-term contracts with battery owners, which in turn raises IFRS application questions. The main issue is whether these arrangements are simply service contracts, or qualify as leases under IFRS 16. PwC looks at these questions in its latest publication on BESS accounting, from the perspective of companies purchasing battery capacity.
Tax developments with IFRS implications
Another useful publication, this time from EY, summarises changes in tax laws that may affect current and deferred tax accounting under IAS 12. The developments are organised by jurisdiction, which makes the publication easy to navigate. For example, it covers accelerated tax depreciation for certain assets in Canada and the lower main rate of capital allowances under the UK writing down allowance regime.
Latest annual reporting cycle under IFRS 17
KPMG has published its latest analysis of the financial statements of insurance companies from around the world. The publication notes growing maturity in the application of IFRS 17, with improved accounting policy information and better disclosures. This year, KPMG has also expanded the publication to include new observations on insurance risk disclosures, levels of aggregation, and key judgement areas relating to the contractual service margin and discount rates.
EY’s updated publication on IFRS 18
EY has issued an updated version of its Applying IFRS: A closer look at IFRS 18 publication. This version replaces the July 2025 edition and is around 50% longer, so it’s more than just a refreshed publication date. The main addition is a new appendix covering additional considerations for banks, but the core publication has also received worthwhile updates, including new illustrative scenarios and FAQs.
EY has also released a standalone publication summarising IFRS 18 agenda decisions issued by the IFRS Interpretations Committee to date, although these are incorporated into the main publication as well.
Work in Progress at the IASB
The IASB met on 20-22 April 2026 and worked hard to advance both the larger and smaller projects on its agenda, although there weren’t any major developments I’d highlight in this issue.
Miscellany
Revised IFRS Due Process Handbook
The IFRS Foundation has published the revised Due Process Handbook, which governs the IASB’s standard-setting process and the operations of the IFRS Interpretations Committee. The main changes relate to the creation of the ISSB, although there are also some minor changes affecting the accounting side of IFRS, as summarised in the project summary at the bottom of the press release.
That’s all for this edition of Reporting Period. Thanks for reading and see you in the next issue!
Best regards,
Marek