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Applying IFRS: A closer look at IFRS 18 (Updated July 2025)
This publication discusses the new requirements in IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1.
IFRS 18 is effective for reporting periods beginning on or after 1 January 2027. It introduces several new requirements that are expected to impact the presentation and disclosure of most, if not all, entities. These include:
- The requirement to classify all income and expense into specified categories and provide specified totals and subtotals in the statement of profit or loss.
- Enhanced guidance on the aggregation, location and labelling of items across the primary financial statements and the notes.
- Mandatory disclosures about management-defined performance measures (a subset of alternative performance measures).
IFRS 18 also makes consequential amendments to other accounting standards, including IAS 7 Statement of Cash Flows, IAS 33 Earnings per Share and IAS 34 Interim Financial Statements.
This updated version of our July 2024 publication on the same topic, includes new illustrations as well as frequently asked questions arising out of discussions in practice, covering a range of issues relating to all aspects of the new requirements in IFRS 18.