IFRS 18 Presentation and Disclosure in Financial Statements


IFRS 18 Presentation and Disclosure in Financial Statements was published by the International Accounting Standards Board (IASB) on 9 April 2024. IFRS 18 will be effective for annual reporting periods beginning on or after 1 January 2027 with earlier application permitted.


IFRS 18 will include new requirements for presentation and disclosure in the financial statements, with a focus on the income statement. The IASB developed these requirements in its Primary Financial Statements (PFS) 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 is expected to:

  • require 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.
  • require 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.
  • enhance 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.
  • require 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.

UKEB outreach

More detailed information on planned outreach activities will be published in due course. If you would like to contribute to outreach work on this project, please email ukendorsementboard@endorsement-board.uk.

For further updates on UKEB projects, you can subscribe to our newsletters and alerts by emailing contact@endorsement-board.uk and putting SUBSCRIBE in the subject.

UKEB meetings

Meeting(s) related to the endorsement of IFRS 18 is/are as follows:

Document type