IFRS 18 - BIG changes coming

More changes coming, mostly for investor decisions

It seems more changes are coming.

Article 18 - April 2024

Key points

  1. The first update of its kind for seven years, IFRS 18 is expected to have the greatest effect on the structure of financial statements since the standards began.
  2. The standard will be effective for annual reporting periods beginning on or after 1 January 2027, though the IFRS said entities may begin applying it sooner.
  3. IFRS18 will replace IAS 1 Presentation of Financial Statements but carries forward many of its requirements unchanged.
  4. Unlike IAS1, the new standard will require income and expenses to be classified into five categories: investing, financing, income taxes, discontinued operations, and operating.

  5. According to Boshoff, there is no clear alignment between the investing, financing, and operating categories and their equivalents in the statement of cash flows under IAS 7.