IFRS 18 Presentation and Disclosure in Financial Statements will replace IAS 1, introducing two new mandatory subtotals in profit and loss statements: operating profit and profit before financing and income taxes. The standard also requires disclosure of management-defined performance measures and establishes new principles for aggregation and disaggregation of financial statement items.
Member Tax Intelligence · July 2026
Global — IFRS 18 Replaces IAS 1 Financial Statement Presentation
GLOBAL
Global Other Effective: 1 January 2027 Important Update
What’s Changing
Global — IFRS 18 Replaces IAS 1 Financial Statement Presentation
What This Means for You
- Accounting and law firm advisors will need to help clients restructure their financial statement presentation to comply with the new mandatory subtotals and disclosure requirements.
- Advisory teams should prepare for significant changes to financial reporting processes and systems, particularly around profit and loss statement formatting and management performance measure disclosures.
Does This Apply to You?
- All entities preparing financial statements under IFRS will be affected, particularly publicly listed companies and multinational corporations that use management-defined performance measures in public communications
Key Dates
- Effective: 1 January 2027
- Other
- Published: 2026-05-04
- Source: IFRS Foundation — IFRS 18 & New Standards
How We Can Help
- Begin client education and assessment of current financial statement formats against IFRS 18 requirements
Your Next Step
Begin client education and assessment of current financial statement formats against IFRS 18 requirements.
Disclaimer: This update is provided for general informational purposes only and does not constitute professional tax, legal, or accounting advice. Tax laws change frequently — always verify at source and seek qualified local advice before acting. Abacus Worldwide® is a global association of independent professional firms.
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