The International Accounting Standards Board (IASB) has issued a new standard, IFRS 18: Presentation and Disclosure in Financial Statements. This standard supersedes IAS 1 and aims to enhance the relevance, comparability, and transparency of financial statements, particularly regarding management-defined performance measures. Effective from 1 January 2027, with the option for earlier application, the standard introduces several key changes:

Management considerations

  • Management considerations

    Review income and expense classification to ensure proper categorisation within the relevant IFRS 18 categories.

  • Management considerations

    Consider potential inconsistencies between the classification of items in the profit or loss and the disclosure categories used in the cash flow statement.

  • Management considerations

    Revisit non-GAAP measures for appropriate disclosure in both financial statements and public communications.

  • Management considerations

    Evaluate the overall impact of IFRS 18 on the presentation and understandability of your financial statements.

  • Management considerations

    Assess the impact on finance processes and IT systems involved in data collection and financial reporting to ensure a smooth transition.