expected to have
a material impact on
the consolidated accounts
at implementation, except
for IFRS
18 Presentation and Disclosure in Financial Statements.
IFRS 18 Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which
replaces IAS 1. The standard is effective for
annual periods beginning on or after 1 January 2027, with
retrospective application.
IFRS 18 introduces a five-category classification system
for income and expenses: operating,
investing, financing, income tax, and discontinued operations. The operating
category will include
most items currently presented within operating profit.
Income and expenses from investments in
associates and joint ventures, equity investments and cash
and cash equivalents will be presented in
the investing category.
Income and expenses that arise from transactions that involve only the
raising of finance or items that arise from transactions that do not involve
only the raising of finance
but are identified by other IFRS will be classified in the financing category.
Interest expense on
borrowings and lease liabilities will therefore be presented
in the financing category. Foreign
exchange differences (currently
presented in financial result) that relate to income and expenses
for
items that will be classified in the financing category will be presented in this category
accordingly.
However, foreign
exchange differences related
to cash and cash equivalents will be presented in the
investing category and foreign exchange
differences related to trade receivables
or trade payables
will be classified in the operating category.
Three new mandatory subtotals are required. Operating
profit or loss
shall comprise all income and
expenses classified in the operating category.
The profit or loss before financing and income tax will
include all income and expenses classified in the operating or investing category.
Additionally, a
profit or loss subtotal will be required which is equal to our profit from continuing
operations.