In April 2024, the International Accounting Standards Board (IASB) issued the new IFRS 18 “Presentation and Disclosure of Financial Statements”. It is effective for annual reporting periods beginning on or after 1 January 2027, with early adoptions being permitted. IFRS 18 will replace the existing IAS 1 Presentation of Financial Statements. IFRS 18 aims to improve how companies communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss.
IFRS 18 will affect all companies in all industries. Although IFRS 18 will not affect how companies measure financial performance, it will affect how companies present and disclose financial performance.

IFRS 18 aims to improve financial reporting by:

• Requiring additional defined subtotals in the statement of profit or loss
• Requiring disclosures about management-defined performance measures; and
• Adding new principals for grouping (aggregation and disaggregation) of information

OBJECTIVES

• Discuss the similarities and differences between IAS 1 and IFRS 18
• Critically examine the new defined subtotals and the new five categories introduced in the ‘Statement of profit or loss’ and the transition from the existing ‘Statement of profit or loss’ to the new format under IFRS 18
• Understand what are “Management-defined Performance Measures” (MPMs) and the required disclosure for MPMs
• Discuss the steps to prepare for the transition from IAS 1 to IFRS 18

Programme Outline

The Principles of IFRS 18 compared and contract with IAS 1

• A complete set of financial statements
• The role of primary financial statements
• The role of notes
• Identification of financial statements
• Consistency of presentation, disclosure and classification
• Comparative information and frequency of reporting
• Changes in Accounting policy, retrospective restatement and classification
  • Requirements in IAS 1 that have been moved to IAS 8 Basis of Preparation of Financial Statements (Existing name: IAS 8 Accounting policies, Changes in Accounting Estimates and Errors)
• Aggregation and disaggregation of financial information
• Offsetting assets and liabilities, income and expense
• Deciding line items and subtotals

Comparing the complete set of financial statements between the two Standards

• Presenting Statement of Profit or Loss
  • Understanding the new 5 categories:

• ​​​​​Understanding and presenting the new total and subtotal:

• Presenting Statement of Financial Position
  • A brief guide and mapping of the paragraphs in IFRS 18 and IAS 1
• Presenting Statement of Changes in Equity
  • A brief guide and mapping of the paragraphs in IFRS 18 and IAS 1
• Presenting Statement of Cash Flows
  • The use of the new subtotal “operating profit or loss” for indirect method
  • Understanding the new presentation of interest and dividend received and paid
• Notes to the financial statements
  • A mapping of the paragraphs in IFRS 18 and IAS 1 to identify similarities and differences
• Management-defined Performance Measure (MPM)
  • Definition of and how to identify MPM
  • How and when to use MPM by management
  • Disclosure of MPM and reconciliation to most directly comparable total or subtotal in Statement of Profit or Loss

Transitional Provision

• Tips and practical guide on transiting from IAS1 to IFRS 18

Training Methodology

Interactive facilitated presentation and panel discussion

Closing Date for Registration

1 week before programme or until full enrolment

Intended For

This programme is suitable for preparers and auditors of financial statements, members of Audit Committee, Finance Directors and Regulators and those who are keen to gain an early understanding of the new IFRS 18 to better prepare for the transition from IAS 1 to IFRS 18

Competency Mapping

Category 1 = 7.00 Hours

Programme Facilitator(s)