IFRS 18, the Illustrative Examples and the Basis for Conclusions are available to IFRS Digital subscribers and can be accessed via the completed project page. Other supporting material on the project page is available to all.

For other Issued Standards, the 2024 Issued Standards includes all amendments issued up to and including 1 January 2024.

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IFRS 18 sets out the requirements for the presentation and disclosure of information in the financial statements. The standard is effective from 1 January 2027, subject to local endorsement requirements.

A complete set of financial statements includes:

• a statement of financial performance for the period (the statement of profit or loss and other comprehensive income)
• a statement of financial position (balance sheet) at the end of the period 
• a statement of changes in equity for the period
• a statement of cash flows for the period 
• notes to the accounts
• comparative information in respect of the preceding period.

IFRS 18 also requires a statement of financial position at the beginning of the preceding period where there has been a retrospective adjustment to the accounts or reclassification of items.

Entities may use other names for the main statements, and the totals, subtotals and line items within, as long as they are labelled in a way that faithfully represents the characteristics of the items.

The statement of profit or loss and other comprehensive income, as the name suggests, presents profit and loss for the period as well as other comprehensive income. Other comprehensive income includes income and expenses not recognised in profit or loss such as revaluation surpluses. The statement of profit or loss and other comprehensive income may be presented either as one statement or a separate statement of profit or loss and statement showing other comprehensive income.

IFRS 18 includes requirements on the grouping of information in the financial statements, and guidance to determine if information should be included in the primary financial statements or disclosed in the notes.

Entities who use management-defined performance measures, as termed within the standard, must make specified disclosures in the notes. Subtotals of income and expenses used in public communications to communicate management’s view of financial performance, such as adjusted operating profit, will be in scope of this requirement.