Question 1

What is IFRS 18 and when is it mandatory?

Accepted Answer

IFRS 18 Presentation and Disclosure in Financial Statements replaces IAS 1 Presentation of Financial Statements for annual reporting periods beginning on or after 1 January 2027. It introduces mandatory income statement classification into five categories — operating investing financing income taxes and discontinued operations — new specified subtotals including operating profit or loss and profit or loss before financing and income taxes, mandatory disclosure requirements for management-defined performance measures MPMs, and changes to the cash flow statement presentation. Early adoption is permitted. Every IFRS-reporting entity worldwide is affected.

Question 2

What are management-defined performance measures MPMs under IFRS 18?

Accepted Answer

Management-defined performance measures MPMs under IFRS 18 are subtotals of income and expenses — or following the IASB December 2025 update subtotals of cash inflows and outflows — that are used in public communications outside financial statements. Examples include adjusted EBITDA, adjusted operating profit, and underlying profit. IFRS 18 requires mandatory disclosure of MPMs in the notes to financial statements including reconciliation to the most directly comparable IFRS-defined total or subtotal, income tax effect disclosure, and an explanation of why the MPM provides useful information. These requirements affect virtually every listed company globally.

Question 3

What are the IFRIC March 2026 clarifications on IFRS 18?

Accepted Answer

The IFRIC finalised four agenda decisions in March 2026 addressing key IFRS 18 implementation questions. First the scope of paragraph 83 of IFRS 18 and operating category classification. Second the classification of gains and losses on derivative financial instruments under paragraphs B70 to B76. Third the classification of foreign exchange differences from intragroup monetary items. Fourth how a parent entity assesses its main business activity in separate financial statements when investing in unconsolidated subsidiaries. These clarifications directly affect how entities classify and present transactions under IFRS 18 and are covered in all Shasat IFRS 18 training courses.

Question 4

What IFRS 18 training courses does Shasat offer?

Accepted Answer

Shasat offers the most comprehensive IFRS 18 training catalogue available globally. It includes a 5-day IFRS 18 Implementation Training Workshop GID 60100 at £5,100 available online and in-person globally, an online IFRS 18 course GID 60000 at £1,900 available worldwide, and 2-day IFRS 18 Presentation and Disclosure workshops in London GID 60101, Singapore GID 60102, Toronto GID 60103, Hong Kong GID 60104, Dubai GID 60105, Sydney GID 60106, Cape Town GID 60107, Miami GID 60108, and Rio de Janeiro GID 60109 at £2,200 to £2,400. All programmes incorporate IASB December 2025 and IFRIC March 2026 clarifications.

Question 5

How does IFRS 18 affect the income statement structure?

Accepted Answer

IFRS 18 requires all entities to classify income and expenses in the statement of profit or loss into five mandatory categories — operating investing financing income taxes and discontinued operations. For most entities operating items include all income and expenses not classified in the other four categories. IFRS 18 also requires two specified subtotals — operating profit or loss and profit or loss before financing and income taxes — in addition to the existing profit or loss subtotal. These requirements significantly reduce the judgemental flexibility entities currently have in structuring their income statement and affect every IFRS-reporting entity worldwide.

Question 6

What is the difference between IFRS 18 and IAS 1?

Accepted Answer

IFRS 18 replaces IAS 1 Presentation of Financial Statements effective 1 January 2027. The key differences are that IFRS 18 introduces mandatory classification of income and expenses into five categories whereas IAS 1 had no mandatory operating category. IFRS 18 requires two specified subtotals — operating profit or loss and profit or loss before financing and income taxes — which IAS 1 did not require. IFRS 18 introduces mandatory MPM disclosure requirements which IAS 1 did not have. IFRS 18 changes the cash flow statement classification principles. And IFRS 18 introduces new aggregation and disaggregation principles. All Shasat IFRS 18 training courses cover the complete IAS 1 to IFRS 18 comparison.

Question 7

Is IFRS 18 training relevant for African finance professionals?

Accepted Answer

Yes. IFRS 18 is mandatory for all IFRS-reporting entities across Africa. Listed companies in South Africa, Kenya, Nigeria, Ghana, Tanzania, Uganda, Rwanda, Zambia, Zimbabwe, Botswana, Namibia, Mauritius, Egypt, Morocco, and all African nations where IFRS Accounting Standards are adopted must implement IFRS 18 by 1 January 2027. Shasat's IFRS 18 training courses are available in Cape Town, Nairobi, Johannesburg, London, and online making them the most accessible IFRS 18 training for African finance professionals. CPD and CPE accredited by ICPAK Kenya, ICAN Nigeria, SAICA South Africa, and major African professional bodies.

Question 8

Is IFRS 18 training relevant for GCC and Middle East finance professionals?

Accepted Answer

Yes. IFRS 18 is mandatory for all IFRS-reporting entities across the GCC and Middle East. Listed companies and financial institutions in the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, Jordan, Egypt, and Morocco must implement IFRS 18 by 1 January 2027. Shasat's IFRS 18 training courses are available in Dubai, London, and online making them the most accessible IFRS 18 training for GCC and Middle East finance professionals. The Dubai 2-day workshop GID 60105 is specifically designed for GCC and MENA finance professionals.

Question 9

What is the parallel reporting requirement for IFRS 18 in 2026?

Accepted Answer

IFRS 18 requires retrospective application meaning entities must restate comparative period financial statements. For a 31 December 2027 year-end entity the 2026 comparative year income statement balance sheet and cash flow statement must all be restated under IFRS 18. This means finance teams must run parallel reporting in 2026 — preparing financial statements under IAS 1 for 2026 standalone reporting and under IFRS 18 for 2027 comparative figures simultaneously. This creates significant operational complexity and makes 2026 the critical preparation year for every IFRS-reporting entity globally.

Question 10

Which professional bodies recognise Shasat's IFRS 18 CPD and CPE accreditation?

Accepted Answer

Shasat's IFRS 18 training courses are CPD and CPE accredited and recognised by ACCA, CIMA, ICAEW, the Institute of Chartered Accountants of India ICAI, Chartered Accountants Australia and New Zealand CAANZ, CPA Australia, the Institute of Chartered Accountants of Kenya ICPAK, the Institute of Chartered Accountants Ghana ICAG, the Institute of Chartered Accountants of Nigeria ICAN, the South African Institute of Chartered Accountants SAICA, and major professional accounting bodies across every IFRS-reporting jurisdiction worldwide.

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