What you need to know

RSM — Financial Reporting Insights

IFRS 18 replaces IAS 1 and sets out general and specific requirements for the presentation of financial statements.

The new requirements of the standard include

  • Required totals, subtotals and new categories for all income and expenses included in the statement of profit or loss
  • Disclosure of management-defined performance measures (MPMs)
  • Enhanced guidance on the grouping (aggregation and disaggregation), description (labelling) and location of information

Effective date and transition

Effective date

IFRS 18, and the consequential amendments to other standards, are effective for reporting periods beginning on or after 1 January 2027, with earlier application permitted.

Retrospective application is required in both annual and interim financial statements, along with specified reconciliations for certain comparative periods.

Although the impact of the new requirements may vary between entities, IFRS 18 is expected to impact all entities, across all industries'

How can we assist

Adapting to IFRS 18 will require more than simply updating your financial statements. You'll have to rethink presentation, disclosure and the way information is communicated to stakeholders.

Our financial reporting experts will be providing the latest insight and guidance over the coming months.

Contact us