January 2026
Hi,
Here are your articles on accounting, sustainability reporting and capital market updates for the month.
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A whole new hedge accounting model for banks: the IASB’s ‘risk mitigation accounting’ proposals
Banks commonly use interest rate derivatives to dynamically manage their net open risk position – specifically, the interest rate repricing risk arising due to mismatches between interest-bearing assets and funding resources in the banking book. In contrast, under current hedge accounting models, designations are typically applied to gross exposures (using bottom layer approach). Accordingly, existing hedge accounting requirements might not always meet the information needs of users seeking to understand the results of dynamic, portfolio level risk management.
To address the issue, the International Accounting Standards Board (IASB) published an Exposure Draft: Risk Mitigation Accounting in December 2025, proposing a new hedge accounting model to better reflect how banks manage interest rate risk. Read PwC’s In brief to find out more about the key proposals and expert observations.
We encourage banks to share their comments on the questions asked in this Exposure Draft. Comments may be submitted to the IASB by 31 July 2026 or shared with the Malaysian Accounting Standards Board by 30 June 2026.
Amendments to IFRS S2: greenhouse gas emissions disclosures
In December 2025, the International Sustainability Standards Board (ISSB) issued ‘Amendments to IFRS S2’ which will be effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted.
These targeted amendments clarify and provide flexibility on the measurement and disclosure of GHG emissions, modifying the disclosures about financed emissions, use of jurisdictional reliefs, and use of an industry-classification system for disclosing financed emissions.
In Malaysia, as Bursa Malaysia’s Main Market and ACE Market Listing Requirements directly references IFRS S1 and IFRS S2, the Amendments to IFRS S2 take effect automatically upon its effective date of 1 January 2027, with early application permitted. Malaysian listed companies therefore can opt to early adopt the Amendments to IFRS S2 when preparing their sustainability statements under the Listing Requirements.
PwC’s Global Investor Survey 2025
PwC’s Global Investor Survey 2025 points to an innovation-led investment thesis for 2026. Capital is flowing to technology, enterprise-wide AI, and business-model agility, with strong support for cross-sector expansion and partnerships. Read our latest Global Investor Survey to find out more.
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