IFRS 18: Part II - management-defined performance measures

Requirements within standard on presentation and disclosure in financial statements

IFRS 18, Presentation and Disclosure in Financial Statements, is the IASB's newest standard, and one of the most far-reaching. It affects all companies, their auditors and investors as it introduces significant changes to the presentation of income statements, greater transparency about performance measures that are defined by management and enhanced disclosures resulting from changes to existing principles for the aggregation and disaggregation of data. The standard will lead to significant improvements in the comparability of income statements between companies and greater transparency of information. This article covers the new requirements for performance measures and should be read in conjunction with IFRS 18: Part 1 - overview and income statement format (WAR, June 2024). Part III will appear in the forthcoming August/September 2024 issue.