In addition to regular meetings with policymakers, trade bodies, and industry experts, the Policy & Technical team leverages its network of treasurers to stay informed about key issues relevant to the profession. Alongside ad hoc feedback from this network, the team also meets with an advisory panel on a quarterly basis.
So, what are we hearing?
- The Global Minimum Tax Rate applies to accounting periods commencing on or after 31 December 2023 and affects multinational enterprises with annual consolidated revenues of at least €750 million. With reporting under this regime now underway for many companies, organisations are finding it harder to apply than previously thought, and earlier calculations may need revisiting. Background information can be found here:
- BEPS Podcast
- global Minimum Tax Webinar
- IFRS 18 was issued by the IASB in April 2024 as a replacement for IAS 1. It introduces:
- a new concept of “liabilities arising from transactions that involve only the raising of finance,” with specific classification requirements for income and expenses related to those liabilities compared to other liabilities
- new detailed requirements for the classification of foreign exchange differences and gains and losses on derivatives and designated hedging instruments.
- Generative AI is being used for several applications, including:
- cash forecasting modelling
- linking accounting receipts to actual cash movements more accurately
- model validation.
- Some payments may be affected by changes to IFRS 9, which take effect from 1 January 2026. Companies using electronic payment systems may consider a financial liability to be discharged before the settlement date if certain criteria are met. For some companies, this may necessitate changes to their systems and affect bank reconciliations.
- Basel 3.1/Endgame continues to impact how banks are reviewing their loan portfolios. As different banks and jurisdictions apply the rules in varying ways, this is complicating the situation for companies with syndicated facilities.
- The FCA is consulting on a new framework to replace the UK prospectus regime. Proposals include:
- raising the threshold at which a prospectus is required for a further issue of shares to 75%
- introducing rules around protected forward-looking statements that will be subject to a less strict liability regime, aiming to encourage companies to make additional disclosures that will be useful to investors.
- The FMSB is developing asset class-agnostic guidance to complement existing product-specific principles, setting out guiding principles for good governance to help identify and mitigate risks inherent in sustainability-linked products. There remains a small window to input into their work (contact jwinterton@treasurers.org).
