Jan 5, 2026
International Accounting Regulatory Landscape in 2025
The year 2025 brought important regulatory updates in accounting at the international level. In February, the International Accounting Standards Board (IASB) issued the third edition of the IFRS for SMEs, the first major revision of these standards in a decade.
Key Updates to IFRS for SMEs
This update, effective from 2027, introduces significant changes, including a revised conceptual framework, a single consolidation criterion for financial statements, new disclosures on financial instruments related to credit and liquidity risk, the addition of a specific chapter on fair value, improvements in the accounting treatment of business combinations through the adoption of the acquisition method, and a single revenue recognition model aligned with IFRS 15.
Amendments to IFRS 9 and IFRS 7
Additionally, amendments to IFRS 9 and IFRS 7 came into effect, adjusting the accounting treatment of certain electricity contracts and strengthening disclosure requirements, thereby improving financial statement transparency.
ESG Reporting and Sustainability Developments in Europe
At the same time, the trend toward ESG reporting gained momentum. In Europe, 2025 marked the consolidation of new sustainability regulations, with the European Commission approving an omnibus package aimed at simplifying certain reporting burdens under the CSRD Directive.
European regulators, through ESMA, set priorities for the 2025 year-end, emphasizing the connectivity between traditional financial information and sustainability disclosures, urging companies to ensure consistency between financial reports and ESG data.
Global Adoption of IFRS Sustainability Standards
Globally, companies also began adopting the IFRS Sustainability Standards S1 and S2 issued by the ISSB, which establish a common language for climate-related and other sustainability risk disclosures.
Outlook for 2026
In summary, during 2025 companies have had to prepare for new accounting and reporting standards, from SME financial statements to sustainability reports. In 2026, broader implementation of these standards is expected, aimed at improving the quality and comparability of corporate information worldwide.