IFRS 18 is Here: Redefining Financial Performance Reporting
Key Points: What’s the Issue? Issued on April 9, 2024, IFRS 18 aims to improve comparability and transparency in performance reporting. The standard defines a structure for the statement of profit or loss and introduces specific disclosure requirements, enhancing comparability and transparency. Key Changes: Enhanced guidance on grouping items based on shared characteristics, affecting all primary financial statements and notes. IAS 7 amendments include specifying ‘operating profit or loss’ as the starting point for cash flows from operating activities and removing existing options for the presentation of interest and dividends. AMA Observations: Who is Impacted? All entities reporting under IFRS standards, both public and private, must comply with the new requirements, including MPM disclosure. Effective Date: Effective from 1 January 2027, with retrospective application required. For more details, contact us at info@amaaudit.com or Adil Khan, our Partner and Head of the IFRS Desk at ak@amaaudit.com.