In April 2024, the International Accounting Standards Board (IASB) issued the new accounting standard, IFRS 18 ‘Presentation and Disclosure in Financial Statements’. This will replace the existing IAS 1 ‘Presentation of Financial Statements’ standard that has been in use for many years.
On the surface this new Standard may appear straightforward, setting out a new presentation requirement for the statement of profit or loss, and providing new definitions and disclosures related to non-IFRS performance measures. However, the details of these new requirements can lead to potential challenges that reporting entities will need to deal with to properly apply the new Standard.
While entities are dealing with a wide range of new reporting requirements, from international tax reform to sustainability reporting, changes to the presentation and disclosures of financial statements may not currently be at the top of their priorities. However, given the potentially pervasive changes brought about by IFRS 18, getting ready for IFRS 18 implementation should be prioritised.
Update December 2025
IFRS 18 'Presentation and Disclosure in Financial Statements' will replace IAS 1 'Presentation of Financial Statements', effective for periods beginning on or after 1 January 2027, with earlier application permitted.
While the core principles set out in our publication remain unchanged, the updated version incorporates refinements and additional insights based on feedback and further analysis since our original release in November 2024. These updates aim to provide clearer guidance on areas that may present application challenges.
The refreshed publication continues to provide a high-level overview of IFRS 18’s requirements, along with practical considerations for implementation. It reinforces the message that for some entities, the changes could be significant, and early assessment remains critical.
Key topics covered include:
- Updates to the statement of profit and loss, and classification of income and expenses
- Management-defined performance measures
- Enhanced guidance on aggregation and disaggregation of information
- Consequential amendments to other IFRS Accounting Standards
Download Get ready for IFRS 18 (update December 2025)
This publication sets out a high-level overview of IFRS 18’s new requirements, along with practical insights into the application challenges.
