Get ready for the new IFRS presentation and disclosure requirements
IFRS 18 changes how most companies present their income statement. Preparation should start now.
IFRS 18 introduces new presentation and disclosure requirements for most IFRS reporters.
Understand the new requirements and concepts
New categories in the income statement, defined subtotals and disclosure of management-defined performance measures.
The implementation team needs to understand the standard and exercise judgment
Classification decisions require knowledge of the business.
Refresh investor communication
Use the opportunity to review performance measures and how results are explained.
Companies may remove outdated measures and introduce new ones
Measures should reflect the current business model.
Involve IT, investor relations and legal teams
Systems, communications and legal review all need to change.
Summary
Early, cross-functional preparation will make the transition smoother.
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