Ask the Accounting Community

Good day everyone, 

I hope this finds you well.

I have a question for you all since it affects all firms using IFRS.

How are you adapting to the new IFRS 18 with the profit and loss accounts, and what kind of challenges are you facing regarding this change?

I hope this will make an engaging discussion.

Looking forward to your responses.

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Omar Almuzaini
Student
Dhahran
Saudi Arabia
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Hi Omar, thanks for discussing something so important and current.

As a Fractional CFO focused on financial predictability for SMEs, I see IFRS 18 as a significant step forward. The new requirements for standardized subtotals in the Statement of Profit or Loss-particularly the 'operating profit' category-will provide much-needed clarity for stakeholders and better comparability across industries.

In my view, a major hurdle for a lot of companies will be overhauling their internal reporting systems right from the start, just to make sure everything lines up with these new categories. But if you think about it, having a more organized and transparent profit and loss statement is a huge plus in the long run, especially when it comes to making big strategic decisions. It's going to take some work upfront, but it's definitely worth it.

I'm curious to see how firms will handle the disclosure of Management-defined Performance Measures (MPMs) under this new standard. Great discussion starter!

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JOSE LUCAS DE OLIVEIRA ARAUJO
Lomita CA
United States
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