In this latest Insights publication, we discuss the accounting implications of the topical issues that entities with a 30 June 2026 year end might want to consider. These issues include geopolitical conflicts (such as the current situation in the Middle East), import tariffs, impairment of non-financial assets, climate change and connectivity between sustainability and financial reporting, private capital transactions, and AI ecosystem transactions. The MFRS disclosure checklist for 30 June 2026 year end is also available here.

MFRS 18 ‘Presentation and Disclosure in Financial Statements’ was issued to replace MFRS 101 ‘Presentation of Financial Statements’.  MFRS 18 is word for word of IFRS 18 and is effective for annual reporting periods beginning on or after 1 January 2027.

MFRS 18 requires entities to identify and disclose information on management-defined performance measures (“MPMs”) in the financial statements. MPMs is defined in MFRS 18 as a ‘subtotal of income and expenses’ that:

1. is used in public communications outside the financial statements;
2. communicates management’s view of an aspect of the financial performance of the entity as a whole to the user of financial statements; and
3. is not specifically required to be presented or disclosed by MFRS Accounting Standards

Identifying MPMs involves judgement. In this PwC podcast: Episode 3 of Decoding IFRS 18 we discuss the latest insights about the tricky areas in identifying and disclosing MPMs.

Listen to the earlier episodes of the podcast below:

• Episode 1 of Decoding IFRS 18 which explores key changes introduced by the new MFRS
• Episode 2 of Decoding IFRS 18 which discuss practical insights and key learnings from early adoption of IFRS 18, illustrated through a fictional listed group – Reinvented Plc.

The risk mitigation accounting (RMA) model proposed by the International Accounting Standards Board (IASB) represents an important step forward in aligning accounting with how entities manage repricing risk. The Exposure Draft was issued on 3 December 2025 and the IASB has recently extended the comment due date from 31 July 2026 to 30 November 2026 . The IASB’s decision responds to stakeholder feedback that more time was required to fully consider the technical and operational aspects of the proposals.

PwC’s latest series of 'In brief' publications explore key considerations around the eligibility criteria for internal transactions and own equity instruments, as well as benchmark derivative adjustments and the risk mitigation excess test proposed in the RMA model. Read the publications below which explore:

• Eligibility criteria in the RMA exposure draft - internal transactions
• Eligibility criteria in the RMA exposure draft - own equity instruments
• Benchmark derivative adjustments and the excess test in the RMA exposure draft