IFRS 18: Overview

IFRS 18, Presentation and Disclosure in Financial Statements, will result in a significant shift in how companies present financial performance. IFRS 18 replaces IAS 1 and introduces rigorous requirements to improve comparability and transparency. This CPE-eligible eLearning course provides you with an overview of IFRS. It begins with introducing IFRS 18, explaining why these changes were necessary to address investor concerns. Next, you learn about the new structured statement of profit or loss, including the mandatory "operating," "investing," and "financing" classification categories and the newly required subtotals. After that, we explore the enhanced principles for grouping information (aggregation and disaggregation) and the specific rules for using the label "other." Finally, we introduce the new requirements for management-defined performance measures (MPMs), ensuring you understand how this subset of non-GAAP financial measures must now be disclosed within financial statements in accordance with IFRS 18.

Topics covered include:

• Introduction and overview of IFRS 18
• The new structured statement of profit or loss
• Classifying income and expenses
• Grouping of information
• Management-defined performance measures (MPMs)

 By the end of this course, you should be able to: 

• Recall the key objectives, scope, and presentation requirements of IFRS 18
• Identify the definition and recall the disclosure requirements of management-defined performance measures (MPMs)