IASB PUBLISHES IFRS 18 PRESENTATION AND

IFRB 2024/04 | IFRS 18 Presentation and Disclosure in Financial Statements 6 Statement of cash flows: operating cash flows, and classification of interest and dividend cash flows IFRS 18 supersedes IAS 1, and has resulted in certain consequential amendments to other IFRS Accounting Standards, such as IAS 7 Statement of Cash Flows as below: The current requirements of IAS 7 are compared with the re. [...] For these entities, the corresponding cash flows are to be classified in the statement of cash flows as follows: Classification in the Classification of the corresponding cash flows in the statement of profit or loss statement of cash flows Interest and dividend Cash flows are classified into the same category (e.g. [...] income and interest operating in the statement of profit or loss and operating expense are all classified in the statement of cash flows). [...] What are the disclosure requirements for MPMs in the scope of IFRS 18’s requirements? For ‘scoped in’ MPMs, entities will be required to disclose the following information in a single note to the financial statements: • A description of why the management-defined performance measure communicates management’s view of an aspect of the entity’s financial performance • How the management-defined perfo. [...] • A description of how the entity determines the income tax effect The inclusion of MPMs in financial statements will be a significant adjustment for many entities, as this type of information has historically been disclosed outside of the financial statements.