Presentation and disclosure in financial statements: New developments in IFRS 18

Subject. This article discusses new developments in the presentation and disclosure requirements for IFRS financial statements. Objectives. The article aims to identify the key developments resulting from the release of the new International Financial Reporting Standard (IFRS) 18 – Presentation and Disclosure in Financial Statements. Methods. For the study, I used analysis and synthesis, comparison, generalization, and abstraction. Results. The article systematizes some of the major changes in the requirements for the presentation and disclosure of information in general purpose financial statements set out in IFRS 18, which supersedes IAS 1 – Presentation of Financial Statements. These requirements are effective in the preparation of the 2027 financial statements. The article also analyzes the structure of the Income Statement, which has undergone the most significant changes, and it determines the newly introduced categories of income and expenses, intermediate totals in the Profit or Loss Statement. Conclusions. Requirements for the classification of income and expenses in the context of five categories: Operating; Investing; Financial; Income Taxes; Discontinued Operations, as well as the obligation to present two new subtotals (Operating Profit and Profit Before Finance Income/Expenses and Income Taxes) provide a more consistent structure of the Profit or Loss Statement, improving its comparability. The requirement to present operating expenses directly in the Income Statement improves the presentation, usefulness and comprehensibility of information communicated to investors. The article contributes to raising awareness and systematizing of the new requirements for the presentation and disclosure of information in financial statements.