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IFRS 18 Presentation and Disclosure in Financial Statements will usher in the most significant change to the statement of profit or loss

🚨 Exciting news for those tracking IFRS updates 🚨 The first new IFRS Standard for 7 years, IFRS 18, is set to overhaul the way that income and expenses are presented in financial statements. Check out this insightful article for a deeper dive into what this means for financial reporting 💼💡 #IFRS18 #FinancialReporting #FinancialDisclosure

New Financial Reporting Standard: IFRS 18 Dear colleagues, The International Accounting Standards Board (IASB) has recently issued IFRS 18, 'Presentation and Disclosure in Financial Statements', which will come into effect on January 1, 2027. This new standard, set to replace IAS 1, is designed to enhance the clarity and consistency of financial reporting across the globe. Key Highlights of IFRS 18: 1. Structured Format: IFRS 18 mandates a structured format for the statement of profit or loss, categorizing financial activities into distinct sections: operating, investing, financing, income taxes, and discontinued operations. 2. Transparency and Disclosure: The standard requires detailed disclosures including management-defined performance measures, ensuring greater transparency in financial reporting. 3. Comparative Information: It emphasizes the necessity of presenting comparative information alongside current data to facilitate better understanding and analysis of financial statements. This new framework aims to refine how entities disclose their financial data, aiming to aid stakeholders in making more informed decisions. For those interested in understanding the detailed implications of IFRS 18 on our reporting processes, it's advisable to review the standard in full. Preparing ahead will help ensure a smooth transition to the new requirements.

📘 New Financial Reporting Standard: IFRS 18 Dear colleagues, The International Accounting Standards Board (IASB) has recently issued IFRS 18, 'Presentation and Disclosure in Financial Statements', which will come into effect on January 1, 2027. This new standard, set to replace IAS 1, is designed to enhance the clarity and consistency of financial reporting across the globe. Key Highlights of IFRS 18: 1. Structured Format: IFRS 18 mandates a structured format for the statement of profit or loss, categorizing financial activities into distinct sections: operating, investing, financing, income taxes, and discontinued operations. 2. Transparency and Disclosure: The standard requires detailed disclosures including management-defined performance measures, ensuring greater transparency in financial reporting. 3. Comparative Information: It emphasizes the necessity of presenting comparative information alongside current data to facilitate better understanding and analysis of financial statements. This new framework aims to refine how entities disclose their financial data, aiming to aid stakeholders in making more informed decisions. For those interested in understanding the detailed implications of IFRS 18 on our reporting processes, it's advisable to review the standard in full. Preparing ahead will help ensure a smooth transition to the new requirements.

The IASB issued IFRS 18 Primary Financial Statements on 9 April 2024, effective for periods beginning on or after 1 January 2027. The new standard sets out the requirements for presentation and disclosure of financial statements, aiming to improve the structure and content of the primary financial statements.  IFRS 18 introduces three key changes to the presentation of financial statements, aiming to improve information about financial performance and enhance comparability between companies. 

IFRS 18 Presentation and Disclosure in Financial Statements, aims to provide investors with clearer and more comparable insights into companies' financial performance, facilitating better investment decisions. This Standard will impact all firms following IFRS Accounting Standards. IFRS 18 introduces three key improvements to financial reporting, designed to enhance transparency and aid investor analysis: 1. Improved Comparability in Income Statements: Currently, income statements lack a standardized structure, with companies choosing their own subtotals. IFRS 18 introduces three defined categories (operating, investing, financing) and requires new subtotals like operating profit, fostering consistency and aiding performance analysis. 2. Enhanced Transparency of Management-Defined Performance Measures: Many companies use custom performance metrics, but clarity on their calculation and relation to required measures is often lacking. IFRS 18 mandates disclosure of explanations for such metrics, subjecting them to audit scrutiny and improving transparency. 3. More Useful Grouping of Financial Information: IFRS 18 provides detailed guidance on organizing financial data, ensuring it's neither too condensed nor overly detailed. This includes improved disclosure of operating expenses, making it easier for investors to locate and comprehend essential information. Companies using IFRS standards will need to adapt to these new requirements, ultimately benefiting both investors and the broader financial community.

#blog IFRS 18: Transforming Financial Statement Presentation and Disclosure IFRS 18 is reshaping financial statement presentation and disclosure, bringing enhanced clarity and transparency. Click to read- https://lnkd.in/g4BFfhna #IFRS18 #FinancialReporting #AccountingStandards

IFRS 18 - Presentation and Disclosure in Financial statements. Released by IASB on 09th April, 2024. Effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January 2027.

New Financial Reporting Standard: IFRS 18 The International Accounting Standards Board (IASB) has recently issued IFRS 18, 'Presentation and Disclosure in Financial Statements', which will come into effect on January 1, 2027. This new standard, set to replace IAS 1, is designed to enhance the clarity and consistency of financial reporting across the globe. Key Highlights of IFRS 18: 1. Structured Format: IFRS 18 mandates a structured format for the statement of profit or loss, categorizing financial activities into distinct sections: operating, investing, financing, income taxes, and discontinued operations. 2. Transparency and Disclosure: The standard requires detailed disclosures including management-defined performance measures, ensuring greater transparency in financial reporting. 3. Comparative Information: It emphasizes the necessity of presenting comparative information alongside current data to facilitate better understanding and analysis of financial statements. This new framework aims to refine how entities disclose their financial data, aiming to aid stakeholders in making more informed decisions.