Get ready for IFRS 18

Grant Thornton International Ltd has refreshed and republished Get ready for IFRS 18 – The new financial statements presentation and disclosure standard.

This publication provides a high-level overview of the new requirements of IFRS 18, along with some practical insights into the potential challenges that entities will face when applying it. The refreshed publication reflects the latest thinking on the new presentation and disclosure standard.

In April 2024, the International Accounting Standards Board (IASB) issued the new accounting standard IFRS 18 Presentation and Disclosure in the Financial Statements (IFRS 18). IFRS 18 is effective for periods beginning on or after January 1, 2027, with earlier application permitted, and will replace IAS 1 Presentation of Financial Statements, which had been applied for many years.

While the core principles set out in the original publication remain unchanged, the updated version incorporates refinements and additional insights based on feedback and further analysis since its original release in 2024. These updates aim to provide clearer guidance on areas that may present application challenges.

The refreshed publication continues to provide a high-level overview of IFRS 18’s requirements, along with practical considerations for implementation. It reinforces the message that, for some entities, the changes could be significant, and early assessment remains critical. Key topics covered include:

• Updates to the statement of profit and loss, and classification of income and expenses;
• Management-defined performance measures;
• Enhanced guidance on aggregation and disaggregation of information;
• Consequential amendments to other IFRS accounting standards.