Technical Briefing: IFRS 18

Why the need for IFRS 18?

As the number of the standard might suggest, IAS 1 was the very first standard in the IFRS framework. As something of an oddity, it was even published before the IFRS Conceptual Framework. Perhaps because of this it includes some references which might be regarded as conceptual in nature. IAS 1 concerns the high-level content of financial statements including the disclosure notes that form an integral part “ IFRS 18 is a really big deal, because it affects pretty much everybody who is using IFRS as a reporting framework, because it’s about the presentation of the financial statements.

of them. In fact, it could be seen as part of a trilogy of standards that collectively form high-level guidance on the general contents of financial statements:

IAS 1 Presentation of Financial Statements. IAS 7 Statement of Cash Flows. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

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2. 3.

This trilogy of high-level standards can be contrasted with the more detailed standards that make up the bulk of the IFRS framework. The latter tends to deal with more specific issues, such as accounting for foreign currency transactions, property, plant and equipment or intangible assets for example.

IFRS 18 | WHY THE NEED FOR IFRS 18?

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