IFRS 18: New standard brings a breath of fresh air to presentation and disclosure under IFRS
IFRS 18 “Presentation and Disclosure in Financial Statements” is a new standard that will significantly change financial reporting under international accounting rules. It replaces the previous IAS 1 and has one main goal: to bring more clarity and transparency to company financial statements – especially in the income statement.
The new regulation has a clear goal: to make it easier for investors, analysts, and other interested parties to read, compare, and better understand financial reports in the future. To this end, IFRS 18 introduces new requirements for structure and disclosure. The structure of financial statements will be standardized, and there will be a stronger focus on the clear presentation of key financial indicators.
Despite these reforms, much of what characterized IAS 1 remains in place, albeit in a revised or newly embedded form. IFRS 18 thus ensures further development rather than a radical break with the past.
The new standard is mandatory for fiscal years beginning on or after January 1, 2027. However, companies have the option of applying IFRS 18 earlier.
What does this mean for companies?
The new standard does not only affect large corporations. All companies that prepare their financial statements in accordance with IFRS – whether listed, privately owned, or non-profit – must prepare for changes. Although the valuation of assets and liabilities remains unchanged, there are significant changes in the presentation of the figures. Among other things, the balance sheet and cash flow statement will be restructured, and more extensive disclosures will be required in the notes. The goal is to achieve greater comparability, greater meaningfulness, and greater confidence in companies’ financial reporting.
Do you have any questions about IFRS? Mr. Thomas Jakob and Mr. Sven Kurer look forward to hearing from you.
