Topic 12 · IAS 1 / IFRS 18, IAS 7, IAS 8

Presentation of financial statements

Which statements make up a complete set, how the balance sheet and income statement are classified and subtotalled, cash flow method choices, and what notes and management reports must disclose.

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Standard-setter changes on this topic

2024-11-04US GAAP
ASU 2024-03: Disaggregation of Income Statement Expenses
Requires public business entities to disclose, in a new tabular note, specified expense categories (such as purchases of inventory, employee compensation, and depreciation and amortisation) within relevant income statement captions. Effective for annual periods beginning after 15 December 2026. Effective 2027-01-01.
2024-04-09IFRS
IFRS 18 Presentation and Disclosure in Financial Statements
Replaces IAS 1 with mandatory income statement categories (operating, investing, financing, income taxes, discontinued operations), two required subtotals, and a new note disclosing and reconciling management-defined performance measures. Effective for annual periods beginning on or after 1 January 2027. Effective 2027-01-01.
2024-03-27FRS 102
Periodic Review 2024 amendments to FRS 102 (Section 2 and related presentation guidance)
Updates the measurement concepts in Section 2 and adds fair value guidance, without changing the basic list of required statements or the Section 1A small-entity reliefs. Effective for periods beginning on or after 1 January 2026. Effective 2026-01-01.
2022-10-31IFRS
Non-current Liabilities with Covenants (Amendments to IAS 1)
Clarifies that a liability is classified as non-current only if the right to defer settlement exists at the reporting date, unaffected by covenant compliance tested after that date or a waiver obtained afterwards. Effective for annual periods beginning on or after 1 January 2024. Effective 2024-01-01.
2021-02-12IFRS
Definition of Accounting Estimates (Amendments to IAS 8)
Introduces a definition of accounting estimates and clarifies how to distinguish changes in accounting estimates from changes in accounting policies, replacing the previous, less precise definition of a change in accounting estimate. Effective for annual periods beginning on or after 1 January 2023. Effective 2023-01-01.