IFRS 18: Presentation and Disclosure in Financial Statements
Why was IFRS 18 “Presentation and Disclosure in Financial Statements” issued in the first place when we already had IAS 1 Presentation of Financial Statements?
The International Accounting Standards Board issued a Staff Paper in October 2023 explaining the rationale of IFRS 18 (“Staff Paper”) aiming to improve various areas in financial and digital reporting, namely:
- Presentation of defined subtotals in statement of profit or loss to improve comparability
- Disclosures about management defined performance measures (MPMs) to provide transparency
- Enhanced requirements for aggregation and disaggregation to provide useful information
- Standardization of cash flow statement presentations.
- Importance of Consistent Digital Data for Investors
