Is there an IFRS 18?

IFRS 18: What You Need to Know

Yes, there is an IFRS 18—and it’s set to bring significant changes to how companies present financial information. Officially titled IFRS 18: Presentation and Disclosure in Financial Statements, this new standard aims to improve transparency and comparability across global financial reporting. It replaces the current presentation requirements found in IAS 1 and IAS 8, streamlining how entities structure their income statements and disclose key financial data.

The standard is effective for annual reporting periods starting on or after 1 January 2027. However, its actual implementation in any given country will depend on local regulatory adoption. Some jurisdictions may endorse it earlier, others later, but multinational companies should prepare regardless. One key requirement: IFRS 18 must be applied retrospectively to all comparative periods presented in financial statements. That means restating past results to match the new format, which could be a heavy lift for finance teams.

Among its core changes, IFRS 18 introduces a clearer structure for the income statement, requiring companies to highlight key performance metrics like "profit or loss from operations" and "profit or loss from investments." It also strengthens disclosure requirements, pushing for better explanations of management’s performance measures (MPMs) and how they tie into overall results.

While two years might seem like a generous timeline, the retrospective application means preparation should start now. Entities will need to reassess historical data, update reporting systems, and train teams on new presentation rules. For many, the journey toward compliance will begin long before 2027.