Summary
IFRS 18 is an important new standard, replacing the foundational standard IAS 1. It will affect pretty much everybody who is using IFRS as a reporting framework. It is being introduced in response to stakeholders asking for better information on issues within the profit or loss account. IFRS 18 requires that all items of income or expense must be reported through profit or loss unless another specific IFRS requires or permits otherwise. IFRS 18 requires that items in profit or loss must be classified in one of five groups.
IFRS 18 specifically defines which disclosures should be included in what is called the primary financial statements. Unlike under IAS 1, revenue and expenditure must be included in operating, investing or financing activities. IFRS 18 requires that the preparer of financial statements must consider which material items share characteristics, and can therefore be aggregated, and which do not, and should therefore be disaggregated.
IFRS 18 | SUMMARY
18
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