In April 2024, the IASB issued IFRS 18 ‘Presentation and Disclosure in Financial Statements’, replacing IAS 1 for reporting periods beginning on or after 1 January 2027. The new standard introduces a more structured statement of profit or loss and enhanced disclosure requirements to improve transparency and comparability.
Contents
IFRS 18 reconstructs the profit or loss statement into defined categories, introduces new mandatory subtotals such as operating profit, and requires detailed disclosures for management-defined performance measures (MPMs). The standard must be applied retrospectively, including reconciliation requirements for comparative periods.
This article provides a concise snapshot of the key requirements and highlights the areas organisations should begin assessing now. Early preparation will be essential to ensure a smooth transition.
