In March 2026, the IFRS Interpretations Committee finalised an Agenda Decision, Presentation of Taxes or Other Changes that Are Not Tax Expense or Tax Income Applying IAS 12 Income Taxes (IFRS 18) confirming that, under the current requirements of IFRS 18 'Presentation and Disclosure in Financial Statements', tax charges that fall outside of the scope of IAS 12 'Taxes' must be classified in the operating category of statement of profit or loss rather than in the income taxes category. 

Some stakeholders raised concerns about the outcome of this Agenda Decision, prompting the IASB to defer its Agenda Decision and, instead, to explore amending IFRS 18. Read PwC In brief for more details. 

MFRS 18 ‘Presentation and Disclosure in Financial Statements’, which replaces MFRS 101 ‘Presentation of Financial Statements’, is effective for annual reporting periods beginning on or after 1 January 2027.  As MFRS 18 are word-for-word identical to IFRS 18, Malaysian preparers should also consider whether any taxes they currently pay could meet the proposed classification criteria.

Synthetic risk transfers (“SRTs”) have become an important credit risk and capital management tool for banks.  SRTs allow a bank to transfer credit risk on a loan portfolio to third parties — typically through credit-linked notes ("CLNs"), financial guarantee contracts, or credit derivatives — while retaining ownership of the loans. The use of SRTs has grown across a number of jurisdictions, driven largely by regulatory capital considerations. 

While all SRTs transfer the credit risk of the underlying loan portfolios, the accounting outcomes may differ depending on the structure and specific requirements related to that structure under MFRS / IFRS Accounting Standards. Read PwC In depth for an overview of common SRT structures and the key accounting considerations from the issuing bank’s perspective. 

The Joint Committee on Climate Change (“JC3”), through its Sub-Committee 2 on Governance and Disclosures, launched 2 National Sustainability Reporting Framework (“NSRF”) Guidance Documents – one for banks and another for insurance and takaful operators (“ITOs”).  

The Guidance Documents cover a selected set of sustainability-related risks and opportunities that are relevant to banks and ITOs respectively. The objective of the documents is to illustrative how an entity might structure its sustainability report to ensure compliance with the IFRS^® Sustainability Disclosure Standards issued by the International Sustainability Standards Board, in line with Bursa Malaysia’s Main Market Listing Requirements. 

• NSRF Guidance Document for FIs – Banking Sector 
• NSRF Guidance Document for FIs – Insurance and Takaful Industry