IFRS 18, Presentation and Disclosure in Financial Statements is an accounting standard issued by the International Accounting Standards Board, effective on 1 January 2027 which replaces IAS 1 to improve comparability and transparency in performance reporting. It requires new, standardised subtotals to be presented in the profit or loss statement and specific disclosure for management-defined performance measures (MPMs).

Income and expenditure values need to be classified into five mandatory categories: operating, investing, financing, income taxes, or discontinued operations.

The structured income statement introduces mandatory subtotal categories, including operating profit or loss and profit or loss before financing and income taxes. Alternative Performance Measures (APMs) used in public communication need to be reconciled with comparable IFRS-defined subtotals.

Aggregation and disaggregation strengthens principles for grouping information to ensure relevant data is not obscured.

The standard does not change the recognition or measurement of items, only the way they are presented.

IFRS 18 applies to annual reporting periods beginning on or after 1 January 2027, with early adoption allowed and restatement of comparative figures required.