bdo.global

IFRB 2026/03 IFRS 18 - the clock is ticking: practical effects on financial reporting BDO has published IFRB 2026/03 IFRS 18 – The clock is ticking: practical effects on financial reporting. IFRS 18 Presentation and Disclosure in Financial Statements, whichsupersedes IAS 1 Presentation of Financial Statements,  is effective for annual reporting periods beginning on or after 1 January 2027.

Panama has introduced economic substance requirements for entities that are part of multinational groups and that earn designated types of foreign-source passive income.

In addition, the government has introduced three special transition initiatives—Employees’ Enrolment Campaign, 2026, VISHWAS, 2026 and AMNESTY, 2026—to support the regularisation of compliance and dispute resolution. This article overviews the key changes and their implications for employers.

Recent decisions of the General Directorate of Taxes (GDT) and the Central Economic-Administrative Court (TEAC) reinforce a clear trend in Spanish VAT practice: the VAT treatment of a transaction increasingly depends on the actual economic reality of the activities performed, the status of the supplier and the functional substance of the arrangement, rather than the contractual form alone.

EC adopts delegated acts on revised ESRSs and on voluntary standard for sustainability reporting As part of its ‘Omnibus I’ package of changes to reduce sustainability and due diligence reporting requirements in the EU, the European Commission (EC) requested the European Financial Reporting Advisory Group (EFRAG) to provide its technical advice on the simplification of the European Sustainability Reporting Standards (ESRS). This technical advice was delivered by EFRAG to the EC in December 2025.

This article summarises the key reforms and highlights critical considerations for global mobility programmes. Increase to the Basic Exemption As the basic exemption for income tax previously remained frozen despite rising prices, ongoing inflation steadily eroded the real value of the exemption, resulting in an increase in the actual tax burden on taxpayers.

IFRB 2026/02 IASB publishes IFRS 20 Regulatory Assets and Regulatory Liabilities BDO has published IFRB 2026/02 IASB publishes IFRS 20 Regulatory Assets and Regulatory Liabilities. On 27 May 2026, the International Accounting Standards Board (IASB) issued IFRS 20, a new IFRS Accounting Standard aimed at improving financial reporting for entities subject to rate regulation, such as entities providing utilities like electricity, water and gas.

IFRS Accounting Standards in Practice - IAS 32 - Accounting for Convertible Notes This publication is an in-depth and comprehensive guide to the requirements for accounting for convertible notes in accordance with IAS 32 from the issuer’s perspective. The publication highlights practical issues that need to be considered when determining the appropriate accounting treatment for convertible instruments from the issuer’s perspective and includes a number of illustrative examples.

IASB issues Amendments to the Fair Value Option for Investments in Associates and Joint Ventures The International Accounting Standards Board (IASB) has finalised and issued targeted amendments to the fair value option in IAS 28 Investments in Associates and Joint Ventures.

With the Australian 2025/26 financial year now closed as of June 30, 2026, employers operating an Employee Share Scheme (ESS) in Australia should turn their attention to their reporting obligations. Timely and accurate compliance is essential — administrative penalties apply for late or incorrect reporting, but these are easily avoided with proper preparation. There are two mandatory reporting steps: Reporting to employees; and Reporting to the Australian Taxation Office (ATO).