| Area | IAS 1 | IFRS 18 |
|---|---|---|
| Standard Title | Presentation of Financial Statements | Presentation and Disclosure in Financial Statements |
| Focus | General presentation guidance across all financial statements | Enhanced focus on statement of profit or loss and disclosures |
| Profit or Loss Structure | Flexible format, limited mandatory subtotals | Requires standardized categories: Operating, Investing, Financing, Income Taxes, Discontinued Operations |
| Subtotals | No prescribed structure beyond profit or loss | Mandatory subtotals: Operating Profit, Profit Before Financing & Tax, Net Profit/Loss |
| Management-Defined Performance Measures (MDPMs) | No specific guidance | Introduces detailed disclosure requirements for MDPMs used in public communications |
| Aggregation & Disaggregation | General principles | Clear rules for when and how to aggregate or disaggregate items, with stronger emphasis on materiality |
| Expense Presentation (Nature vs Function) | Entities choose between nature or function classification | Same choice allowed, but more detailed disclosures required (e.g., breakdown of depreciation, employee benefits) |
| Statement Terminology | Titles are suggested but flexible | Same flexibility, but emphasizes faithful representation of content in labels and subtotals |
| Capital Disclosure | Required, but limited guidance | Expanded disclosure about capital objectives, processes, and compliance |
| Application Guidance & Appendices | Scattered across IAS 1 and other sources | Includes structured application guidance and appendices within IFRS 18 itself |
| Effective Date | Ongoing (for IAS 1) | Applies to periods beginning on or after 1 January 2027 (early application permitted) |
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