PKF Insight | July 2025
This newsletter offers an overview of IFRS 18: Presentation and Disclosure in Financial Statements, which replace IAS 1 and introduces significant changes in the presentation of financial information. It is organized into three parts:
Part 1 provides responses to frequently asked questions (FAQs),
Part 2 provides application guidance, and
Part 3 includes illustrative examples to support understanding and implementation.
A new era in financial reporting starts with IFRS 18 — and it’s time to get ready.
This major overhaul transforms how profit or loss is presented, introduces new subtotals, and demands greater transparency on performance measures. For CFOs, finance teams, and auditors, the transition starts now.
About IFRS 18
IFRS 18 replaces IAS 1 and introduces enhanced requirements for the presentation and disclosure of financial statements, with a focus on the statement of profit or loss. It requires entities to present two new defined subtotals—operating profit and profit before financing and income taxes—and to disclose management-defined performance measures (MPMs) used in public communications.
The standard also strengthens principles for aggregation and disaggregation to improve clarity and comparability. While IFRS 18 retains some content from IAS 1, it also relocates certain provisions to IAS 8 and IFRS 7, building on years of incremental improvements in financial reporting.