This article was updated December 2025.
In April 2024, the International Accounting Standards Board (IASB) issued the new accounting standard, IFRS 18 ‘Presentation and Disclosure in Financial Statements’. This will replace the existing IAS 1 ‘Presentation of Financial Statements’ standard that has been in use for many years.
On the surface this new Standard may appear straightforward, setting out a new presentation requirement for the statement of profit or loss, and providing new definitions and disclosures related to non-IFRS performance measures. However, the details of these new requirements can lead to potential challenges that reporting entities will need to deal with to properly apply the new Standard.
While entities are dealing with a wide range of new reporting requirements, from international tax reform to sustainability reporting, changes to the presentation and disclosures of financial statements may not currently be at the top of their priorities. However, given the potentially pervasive changes brought about by IFRS 18, getting ready for IFRS 18 implementation should be prioritised.
