The International Accounting Standards Board’s (IASB’s) Primary Financial Statements project was finalised in April 2024 with the release of IFRS 18 Presentation and Disclosure in Financial Statements. This new accounting standard replaces IAS 1 and responds to investors’ demand for better information about companies' financial performance. The new standard becomes effective for reporting periods beginning on or after 1 January 2027 and while this may seem like a fair amount of lead time, the nature of decisions that entities will need to make will require strategic consideration and executive input.
IFRS 19 Subsidiaries without Public Accountability: Disclosures has also recently been issued and will provide disclosure relief for eligible entities. Although this accounting standard is also only effective on or after 1 January 2027, early adoption is allowed, and given the disclosure reliefs included therein, many reporters may take this option. Entities are urged to assess whether they are eligible to apply IFRS 19, as the accounting standard allows for a significant reduction in required disclosure.
Various other presentation and disclosure amendments and clarifications have become effective for the first time for periods beginning 1 January 2024. These include IAS 1’s clarifications around the assessment of current vs non-current classification of loans with covenants as well as IAS 7’s new disclosures required for supplier finance arrangements. We will also unpack the IASB’s IFRS Practice Statement 2: Making Materiality Judgements which provides useful guidance to preparers in developing a materiality framework to assist in making materiality judgements.
In light of the above topical issues, in this session we will deal with the following matters:
- Overview of the requirements of IFRS 18 Presentation and Disclosure in Financial Statements
- Understanding which entities are eligible to apply IFRS 19 Subsidiaries without Public Accountability: Disclosures and how the new accounting standard can significantly reduce disclosure.
- Provide an understanding of which arrangements are scoped into the new supplier finance arrangement amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures and the disclosures required
- Unpacking the implications of the recent IAS 1 Presentation of financial statements clarifications of classification of loans with covenants
- Overview of IFRS Practice Statement 2: Making Materiality Judgements
Presenters:
- Abigail Paulus Associate Partner, Financial reporting group
- Emma Gibbs Associate Director, Financial reporting group