IFRS 18 Presentation and Disclosure in Financial Statements
- Active
- Endorsement consultation
- Kathrin Schoene, Aleksandra Sivash, Monica Franceschini, Sergey Vinogradov, Ioanna Michailidi
Description
IFRS 18 Presentation and Disclosure in Financial Statements
After the redeliberations and extensive consultation, the IASB published the IFRS 18 Presentation and Disclosure in Financial Statements on 9 April 2024.
IFRS 18 impacts all entities. It sets out general and specific requirements for the presentation of information in the statement(s) of financial performance, the statement of financial position and the statement of changes in equity. This Standard also sets out requirements for the disclosure of information in the notes. IAS 7 Statement of Cash Flows sets out requirements for the presentation and disclosure of cash flow information. However, the general requirements for financial statements in paragraphs 9–43 and 113–114 apply to the statement of cash flows. IFRS 18 introduces three sets of new requirements to improve the reporting of financial performance:
improved comparability in the statement of profit or loss through defining categories and subtotals to specify the structure of the income statement;
enhance transparency of management-defined performance measures
guidance for aggregation and disaggregation of information to enhance the grouping of information.
EFRAG considered this project one of its key projects as of high interest for European constitutents. EFRAG commented on the Exposure Draft and participated in the field testing of the proposals. During the redeliberation phase the key aspects of the proposals, the IASB decided to conduct outreach activities on a targeted selection of its tentative decisions through roundtable discussions in coordination with National Standard Setters.
The objective of the targeted outreach was to receive feedback from a range of stakeholders that will help the IASB assess whether the selected tentative decisions will function as intended and achieve the intended balance of costs and benefits. EFRAG has prepared a summary report that reflects all the feedback received from the roundtables. The report provided a number of recommendations to the IASB, which take into account the feedback received from its constituents and EFRAG's previous recommendations in its comment letter on the IASB Exposure Draft General Presentation and Disclosures. During the fianalisation of the standard EFRAG followed the project closely on a timely basis and offered the IASB access to its working groups to receive feedback on its tentative decisions.
The European Commission issued its request for endorsement advice to EFRAG on 29 April 2024. EFRAG is on the way to assess the endorsement criteria and to publish a draft endorsement advice by the end of 2024.
Jointly with the IASB and some of its member organisations, EFRAG held educational sessions on IFRS 18 Presentation and Disclosure in Financial Statements. The first session for corporates was held on 7 June; consult the summary report here. The session for financial institutions (including insurance companies and conglomerates) was held on 11 June; consult the summary report here.
The summary reports summarise the feedback received during the events, including panellists' views and experience with the new requirements, related to the following topics:
- Categories and subtotals
- Management-defined Performance Measures (MPMs)
- Grouping – aggregation and disaggregation – of information
- Limited changes to the cash flow statement, effective date and transition requirements
Videos of both sessions can be consulted at the following links:
- Educational session for corporates – 7 June
- Educational session for financial institutions (including insurance companies & conglomerates) – 11 June
Publication of the Draft Endorsement Advice
On 15 November 2024, EFRAG has published its Draft Endorsement Advice (DEA) on IFRS 18 Presentation and Disclosure in Financial Statements and invites stakeholders to submit comments by 26 March 2025 using the online form. EFRAG’s preliminary conclusion is that IFRS 18 satisfies the criteria for endorsement for use in the EU, and therefore recommends IFRS 18 for its endorsement. More information can be found here.
Publications open for comments
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15/11/2024 - EFRAG seeks stakeholders’ comments on its Draft Endorsement Advice on IFRS 18 Presentation and Disclosure in Financial Statements
EFRAG has published its Draft Endorsement Advice (DEA) on IFRS 18 Presentation and Disclosure in Financial Statements and invites stakeholders to submit comments by 26 March 2025.
EFRAG’s preliminary conclusion is that IFRS 18 satisfies the criteria for endorsement for use in the EU, and therefore recommends IFRS 18 for its endorsement.
Documents
Project news
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24/07/2024 - EFRAG Releases Summary Reports on the Educational Sessions on IFRS 18 Presentation and Disclosure in Financial Statements
EFRAG has issued summary reports on the educational sessions on IFRS 18 held on 7 June for corporates and on 11 June for financial institutions (including insurance companies & conglomerates).
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14/06/2024 - Videos now available – EFRAG and IASB Educational Sessions on IFRS 18 Presentation and Disclosure in Financial Statements
EFRAG and the IASB recently held two educational sessions about the new IFRS 18 Presentation and Disclosure in Financial Statements: one for corporate stakeholders, and one for financial institutions, insurance companies and conglomerates. These sessions presented the main requirements of IFRS 18 and how they apply to specific industries and situations.
Practical challenges of the new requirements were discussed and participants had the opportunity to address their questions directly to the IASB.
Videos of both sessions are now available on Youtube:
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27/05/2024 - Programmes available now – 7 (Corporates) and 11 June (Financial institutions) EFRAG and IASB Educational sessions on IFRS 18
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15/04/2024 - Save the Dates - 7 and 11 June IFRS 18 webinars offered by EFRAG and IASB
On 7 June 2024 (10:00 – 13:00 CEST), the IASB, EFRAG & BusinessEurope invite stakeholders to participate in a joint webinar to introduce IFRS 18 Presentation and Disclosure in Financial Statements for corporates and to support them in its implementation. Register here.
On 11 June 2024 (9:00 – 12:00 CEST), the IASB, EFRAG, European Association of Co-operating Banks (EACB), European Banking Federation (EBF), European Savings and Retail Banking Group (ESBG) and Insurance Europe, invite stakeholders to participate in a joint webinar to introduce IFRS 18 for financial institutions, insurance companies and conglomerates and to support them in its implementation. Register here.
The interactive educational sessions will introduce the main requirements and focus on certain requirements set out in IFRS 18. The audience will be able to contribute to the discussion through Q&A sessions.
Both events are public and will be held online. A recording will be available on EFRAG's website.
A detailed programme of both sessions will be issued in the coming weeks.
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23/12/2022 - Primary Financial Statements - Summary Report and Recommendations - Targeted Outreach Roundtables
In order to receive input from preparers and to stimulate the discussion on the key tentative changes to the IASB’s proposals in the Exposure Draft General Presentation and Disclosures, from September to November 2022, EFRAG and the IASB organised joint outreach roundtables with European Stakeholders. EFRAG has now issued a Summary Report and Recommendations that summarises the feedback received during those events and provides a number of recommendations to the IASB.
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29/11/2022 - EFRAG summary reports of the PFS roundtables with preparers held on 24 October, 2 and 4 November 2022
EFRAG has issued reports about feedback received from participants during the roundtables on the IASB’s tentative decisions to change the Exposure Draft General Presentation and Disclosures.
In the roundtables, which were undertaken jointly with the IASB and in collaboration with national standard setters on 24 October, 2 and 4 November 2022, preparers discussed potential implementation and application concerns, potential additional guidance on specific topics and the efforts required to implement and apply the IASB’s selected tentative decisions.
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18/10/2022 - EFRAG releases its educational session on the IASB’s Primary Financial Statements project
The EFRAG Secretariat releases its educational session on the Primary Financial Statements project presenting an overview of EFRAG’s work on the project, and useful educational material for the forthcoming roundtables and webinars. The purpose is to help participants of the targeted outreach with their preparations. Watch the educational session here.
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12/10/2022 - EFRAG educational session on the IASB’s Primary Financial Statements project
On 18 October 2022, the EFRAG Secretariat will provide an educational session on the Primary Financial Statements project presenting an overview of EFRAG’s work on the project, and useful educational material for the forthcoming roundtables and webinars. The purpose is to help participants to the targeted outreach with their preparations. The educational session will be available here.
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21/09/2022 - EFRAG invites companies to participate in roundtable discussions on the IASB’s project Primary Financial Statements
EFRAG in coordination with the IASB and European national standard setters will conduct roundtable discussions with preparers focused on a selection of tentative decisions made by the IASB. These represent a change to the proposals in the Exposure Draft General Presentation and Disclosures (‘the ED’) issued in 2019.
EFRAG would like to invite you to participate in the roundtable discussions taking place on 24 October and 2 November 2022, from 9h to 11h (CET) (closed online event).
If you are interested to participate and express your views, please contact ioana.kiss@efrag.org by 30 September 2022.
