IFRS 18 Presentation and Disclosure of Financial Statements
IFRS 18 Presentation and Disclosure of Financial Statements
The international Accounting Standard Board (IASB) a body responsible for setting accounting standards on 9th April 2024 issued the new IFRS 18 Accounting standard.
IFRS 18 sets out overall requirements for the presentation and disclosure in financial statements. It requires an entity to present a complete set of financial statements at least annually, with comparative amounts for the preceding year (including comparative amounts in the notes). It replaces IAS 1.
IFRS 18 will be effective and applicable for financial reporting beginning on or after 1 January 2027 with earlier application permitted.
Preparation for these changes, needs to start now following the old adage that an “early bird” …..
At BDO in Uganda, we help our clients to adapt to such trends through accounting advisory to ensure your organization/company stays ahead of the curve.
Please stay tuned to our social media pages for our upcoming webinar on how to navigate the new changes in IFRS 18. Presentation and Disclosure of Financial Statements.
IFRS 18 sets out overall requirements for the presentation and disclosure in financial statements. It requires an entity to present a complete set of financial statements at least annually, with comparative amounts for the preceding year (including comparative amounts in the notes). It replaces IAS 1.
IFRS 18 will be effective and applicable for financial reporting beginning on or after 1 January 2027 with earlier application permitted.
What is new with IFRS 18?
IFRS18 introduces new requirement for presentation in the statement of profit or loss which include:- Introducing 3 sub totals in the profit or loss; operating, investing and financing.
- Introducing two new additional sub-totals of operating profit and operating profit before financing and income taxes.
- Requiring disclosure of management-defined performance measures in the notes to the financial statements.
- Providing principles for labeling, aggregation, and disaggregation of information in financial statements.
What is the implication the IFRS18?
The changes brought by the IFRS 18 means that companies will need to revisit and reorganize their reporting format and if need be chart of Accounts and accounting set up to ensure capturing of accounting information that respond to the new changes. Additionally, prior year balances will need to be restated/ reclassified to ensure comparability of financial information when the new standard is adopted or become effective.Preparation for these changes, needs to start now following the old adage that an “early bird” …..
At BDO in Uganda, we help our clients to adapt to such trends through accounting advisory to ensure your organization/company stays ahead of the curve.
Please stay tuned to our social media pages for our upcoming webinar on how to navigate the new changes in IFRS 18. Presentation and Disclosure of Financial Statements.