Classify income and expense items into IFRS 18's operating, investing and financing categories.
Finance & Banking
Implementing IFRS 18 Presentation and Disclosure in Financial Statements
Prepares financial reporting teams to classify income and expenses into IFRS 18's operating, investing and financing categories, present the new required subtotals and disclose management-defined performance measures.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
IFRS 18 replaces IAS 1 for annual periods beginning on or after 1 January 2027, and it changes something every user of a set of accounts relies on: the structure of the statement of profit or loss. Income and expenses now have to be classified into operating, investing and financing categories, two new subtotals become mandatory, and any alternative performance measure that management presents outside the statutory statements has to be labelled as a management-defined performance measure and reconciled back to the nearest IFRS subtotal. This course works through the classification decisions behind each category, the mechanics of the new required subtotals, and the aggregation and disaggregation principles that determine how much detail belongs on the face of the statement against the notes. Participants reclassify an existing set of financial statements into the IFRS 18 structure, draft management-defined performance measure disclosures and reconciliations, and build a transition project plan that covers comparative restatement, system changes and audit committee reporting.
Expected Learning Outcomes
Present the required operating profit and profit before financing and income tax subtotals correctly.
Identify management-defined performance measures and prepare the required reconciliation disclosures.
Apply IFRS 18's aggregation and disaggregation principles to decide statement and note-level detail.
Reclassify an existing statement of profit or loss from IAS 1 into the IFRS 18 structure.
Plan comparative restatement and system changes needed for IFRS 18 transition.
Brief audit committees on the presentation and disclosure impacts of adopting IFRS 18.
Who Should Attend
Group financial reporting managers preparing for IFRS 18 transition.
Financial controllers responsible for statement of profit or loss presentation.
External auditors reviewing client readiness for IFRS 18 adoption.
Investor relations teams explaining performance measure changes to analysts.
Finance system teams configuring chart of accounts and reporting tools for new categories.
Audit committee members overseeing financial statement presentation changes.
Course Modules
Select any module to see its sessions and points.
01IFRS 18 Structure and Classification Principles
2 sessions · 8 points
Session 1Why IFRS 18 Replaces IAS 1
- Identify the presentation inconsistencies under IAS 1 that IFRS 18 was designed to address.
- Explain the effective date, transition timeline and comparative restatement requirements of IFRS 18.
- Compare the overall structure of the statement of profit or loss under IAS 1 and IFRS 18.
- Assess which entities and financial statements fall within the scope of IFRS 18.
Session 2Classifying Income and Expenses into Categories
- Classify income and expense items into the operating, investing and financing categories.
- Apply the main business activity test used to determine operating category classification.
- Resolve classification judgements for items that could plausibly sit in more than one category.
- Assess classification consequences for entities with investing or financing as a main business activity.
02Required Subtotals and Statement Presentation
2 sessions · 8 points
Session 1Building the New Required Subtotals
- Calculate the operating profit or loss subtotal from classified income and expense items.
- Calculate the profit or loss before financing and income tax subtotal and its components.
- Present income and expenses from associates and joint ventures within the correct category.
- Reconcile the new subtotals back to total profit or loss for the reporting period.
Session 2Aggregation and Disaggregation on the Face and in Notes
- Apply IFRS 18's principles for aggregating similar items and disaggregating dissimilar ones.
- Decide which line items belong on the face of the statement against supporting notes.
- Label and describe line items so that their nature and function are clear to users.
- Avoid aggregation that obscures material items or disaggregation that adds unnecessary clutter.
03Management-Defined Performance Measures
2 sessions · 8 points
Session 1Identifying and Defining Management-Defined Performance Measures
- Determine whether a metric used in public communications meets the definition of a management-defined performance measure.
- Distinguish management-defined performance measures from non-GAAP measures used outside financial statements.
- Document the definition, purpose and calculation method for each management-defined performance measure.
- Assess consistency of management-defined performance measures across reporting periods.
Session 2Reconciliation and Disclosure Requirements
- Prepare a reconciliation from each management-defined performance measure to the nearest IFRS subtotal.
- Disclose the income tax effect and impact on non-controlling interests within the reconciliation.
- Draft disclosures explaining why a management-defined performance measure provides useful information.
- Review management-defined performance measure disclosures for consistency with audit committee expectations.
04Transition Planning and Governance
2 sessions · 8 points
Session 1Planning the Transition to IFRS 18
- Build a transition project plan covering classification decisions, systems and comparative restatement.
- Assess chart of accounts and reporting system changes needed to capture the new categories.
- Coordinate transition timelines with external auditors and audit committee reporting cycles.
- Identify data needed to restate prior period comparatives under the IFRS 18 structure.
Session 2Communicating Change to Stakeholders
- Brief audit committees and boards on presentation changes and their effect on reported subtotals.
- Prepare investor and analyst communications explaining changes to key performance measures.
- Train finance teams on new classification judgements and documentation requirements.
- Establish a governance process for approving management-defined performance measures going forward.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
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