Andreas Barckow, Chairman of the IASB, said: “IFRS 18 represents the most significant development in reporting the financial performance of companies since the introduction of IFRS accounting standards more than 20 years ago. It will allow investors to have better quality information and consistent anchor points for their analyses. “.
The CSRD is not the only directive to ask companies to be more transparent and rigorous. IFRS 18 seeks to reinforce this in reporting using a common methodology, particularly for alternative indicators, called management-defined performance indicators. The calculation method must be clearly explained in order to help investors have a better understanding.
To improve the income statement structure, companies will have to publish income and expenses (operating, investment and financing), as well as new subtotals, including operating income. This new information should allow improved comparability.
All companies IFRS accounting standards compliant are concerned by IFRS 18. The new standard should allow investors to make more informed choices (better analysis and comparison) thanks to clearer information and a more detailed methodology.
More detailed resources on the new standard are available on the official website.
