In September 2025, the IFRS Interpretations Committee published a Tentative Agenda Decision on how foreign exchange (FX) differences arising from intragroup monetary items should be classified under IFRS 18 Presentation and Disclosure in Financial Statements. This issue is particularly relevant for entities with significant intragroup borrowings, where consolidation adjustments can create additional complexity.

Our submission acknowledges that this is a nuanced implementation challenge and supports the decision not to add a standard-setting project to the IASB work plan. We agree that both proposed Views outlined in the Tentative Agenda Decision are reasonable interpretations of IFRS 18.B65:

• View I: Classifying FX differences in the operating category by default
• View II: Classifying FX differences in the same category as the related gains or losses would have been before elimination

Feedback from stakeholders indicates that View I is often preferred for its practicality and cost-effectiveness, while View II provides a more precise reflection of operations, provided the information is readily available.

As IFRS 18 moves closer to implementation, preparers should consider how these interpretations align with their systems and processes.