IFRS 18 Presentation and Disclosure in Financial Statements
Project Type:
Endorsement
Status:
Active
Milestone:
Consultation
On 9 April 2024 the International Accounting Standards Board (IASB) published IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 has an effective date of 1 January 2027, with earlier application permitted (subject to UKEB adoption in the UK).
On 9 July 2025, the UKEB published its [Draft] Endorsement Criteria Assessment of IFRS 18 (IFRS 18 [Draft] ECA). The public consultation period closes on 7 October 2025.
The UKEB invites stakeholders to submit their comments.
The following relevant documents are available:
- A webcast introducing the UKEB’s IFRS 18 [Draft] ECA
- The UKEB’s IFRS 18 [Draft] ECA
- Submit your comments by filling out this Invitation to Comment and Your Details Form
If you have any questions regarding the IFRS 18 [Draft] ECA or any questions about this endorsement project, feel free to contact us at [email protected].
Background
IFRS 18 replaced IAS 1 Presentation of Financial Statements.
IFRS 18 sets out general presentation and disclosure requirements that apply across the primary financial statements and the notes. IFRS 18 does not change how entities recognise and measure items in the financial statements.
The IASB developed these requirements in its Primary Financial Statements project. The IASB undertook this project in response to investors' concerns about the comparability and transparency of companies’ performance reporting.
In December 2019, the IASB published the Exposure Draft ED/2019/7 General Presentation and Disclosures (ED). The UKEB Secretariat response to the ED was submitted in September 2020. The UKEB Secretariat’s Feedback Statement (published in October 2020) summarises the outreach work undertaken, stakeholder views, and the final position on the proposals in the ED.
Refer to this project webpage for details of the UKEB’s influencing project on the ED.
Main Requirements in IFRS 18
IFRS 18 :
- requires presentation of two new defined subtotals in the income statement—operating profit and profit before financing and income taxes—which are expected to improve comparability among companies by creating a consistent structure for the income statement.
- requires disclosure of management-defined performance measures (MPMs)—subtotals of income and expenses not specified by IFRS Accounting Standards that are used in public communications to communicate management’s view of an aspect of a company’s financial performance. A reconciliation between the MPMs and the most directly comparable totals or subtotals specified by IFRS Accounting Standards is also required to provide transparency on the entity-specific performance measures.
- enhances the general and specific requirements for aggregation and disaggregation to help a company to provide useful information. The specific requirements include those for disaggregation of ‘other’ balances, presentation of operating expenses in the income statement and disclosure of specified operating expenses by nature included in each function line item.
- requires limited changes to IAS 7 Statement of Cash Flows to improve comparability by specifying a consistent starting point for the indirect method of reporting cash flows from operating activities and eliminating options for the classification of interest and dividend cash flows.
Outreach
The UKEB outreach plan includes discussions with stakeholders and public consultation on the UKEB IFRS 18 [Draft] ECA as explained below.
If you would like to contribute to outreach work on this project, please email [email protected].
[Draft] Endorsement Criteria Assessment
On 9 July 2025, the UKEB published its [Draft] Endorsement Criteria Assessment of IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18 [Draft] ECA). The public consultation period closes on 7 October 2025.
Webcast on the [Draft] Endorsement Criteria Assessment of IFRS 18
Watch the webcast below introducing the UKEB’s IFRS 18 [Draft] ECA. This webcast:
- Explains why in the UK an endorsement criteria assessment is needed before adopting a Standard for use by UK companies.
- Explains what the endorsement criteria are for adoption in the UK.
- Introduces the key aspects of the UKEB’s draft endorsement criteria of IFRS 18.
- Describes the evidence used for this draft assessment.
- Explains why the views of UK stakeholders are vital to this consultation.
Submit your comments on the IFRS 18 [Draft] Endorsement Criteria Assessment
The relevant documents are:
- The UKEB’s IFRS 18 [Draft] ECA
- Submit your comments by filling out this Invitation to Comment and Your Details Form.
Work Supporting this Assessment
The work to support the IFRS 18 [Draft] ECA has spanned several months and has been responsive to stakeholder input throughout. The UKEB conducted several outreach activities to collect evidence to assess whether IFRS 18 meets the technical and the long term public good assessment criteria for endorsement. These activities include:
- Engagement with its UKEB Advisory Groups and with its Financial Instruments Working Group.
- Surveys and questionnaire: The UKEB conducted two surveys, one for UK preparers and one for UK users and sent a short questionnaire to members of the UKEB Accounting Firms and Institutes Advisory Group (AFIAG) to gather views on the likely costs and benefits of adoption.
- Interviews: The UKEB conducted interviews with preparers to gather evidence for the long term public good assessment.
- Other engagement: The UKEB engaged bilaterally with UK regulators, professional accounting bodies, industry associations, users and other national and regional standard setters and conducted a webinar poll.
A link to the results from the two surveys and the questionnaire can be found below:
- Access the results from the UKEB Preparer survey
- Access the results from the UKEB User survey
- Access the results from the UKEB Auditor questionnaire (to members of UKEB AFIAG).
Educational Video on IFRS 18
We have published a series of webcasts explaining the main requirements of IFRS 18.
Educational and Outreach Webinar on IFRS 18
The UKEB held a webinar on Monday 29 July 2024 to discuss the key requirements of IFRS 18 Presentation and Disclosure in Financial Statements and its implications. This event featured a presentation by IASB Member Nick Anderson on the main requirements of IFRS 18 and a discussion of the key issues by a panel of preparers and a user of accounts. The UKEB also shared the timeline and planned activities for its endorsement work of IFRS 18.
UKEB Meetings
UKEB Meetings
Meetings related to the endorsement of IFRS 18 are as follows:
- 23 February 2024: Project Initiation Plan
- 28 March 2024: Updated Project Initiation Plan
- 12 December 2024: Results of the surveys on IFRS 18 Presentation and Disclosure in Financial Statements and identification of significant issues
- 28 March 2025: IFRS 18 Presentation and Disclosure in Financial Statements – Draft Endorsement Criteria Assessment
- 22 May 2025: IFRS 18 Presentation and Disclosure in Financial Statements - Draft Endorsement Criteria Assessment (Long Term Public Good Assessment)
Timeline
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2
Consultation
Hide all milestone documentation
The UKEB published its [Draft] Endorsement Criteria Assessment on 9 July 2025 for public consultation.
[Draft] ECA - IFRS 18 Presentation and Disclosure in Financial Statements
Invitation to Comment
Invitation to Comment - IFRS 18 Presentation and Disclosure in Financial Statements
Invitation to Comment - Your details - IFRS 18 Presentation and Disclosure in Financial Statements
The consultation closes on 7 October 2025.
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1
Initiation
Hide all milestone documentation
The UKEB published its Project Initiation Plan on 3 April 2024.
Project Initiation Plan - IFRS 18 Presentation and Disclosure in Financial Statements
Open for Comment
Deadline: 7 Oct 2025