02/01/2026
📢 Understanding the Shift from IAS 1 to IFRS 18: A Visual Comparison
As we prepare for the adoption of IFRS 18, it’s essential to understand how the new standard reshapes the presentation of the statement of profit or loss—while the bottom-line profit remains unchanged.
Here’s a side-by-side look at how the same financial performance is presented under IAS 1 and the forthcoming IFRS 18:
IAS 1 (Current):
Flexible structure
Operating profit is optional
Limited categorization
Lower comparability across entities
IFRS 18 (Effective 2027):
Standardized into three mandatory categories: Operating, Investing, and Financing
Introduces required subtotals: Operating Profit and Profit Before Financing & Income Tax
Enhances transparency, consistency, and comparability
Clearly separates core operations, investment returns, and financing costs
📊 Key Takeaway:
IFRS 18 does not change how profit is calculated—only how it is presented. This shift is designed to provide stakeholders with clearer insights into business performance and improve cross-entity comparability.
Are you and your finance team ready for IFRS 18?
How do you think this will impact your financial reporting and analysis?
