The EAA’s Financial Reporting Standards Committee in cooperation with the IASB and EFRAG will organize on the 24th of February 2025 from 14:00 – 16:00 a workshop which aims to inform researchers on the type of information standard setters would welcome in order evaluate the implementation of IFRS 18 ‘Presentation and Disclosure in Financial Statements’. Mandatory application of IFRS 18 is foreseen from the first of January 2027 with a possibility of earlier application. The objective of this new standard is to give investors more transparent and comparable information about companies’ financial performance. To reach this purpose IFRS 18 proposes three main changes: (1) introduction of two new subtitles in the statement of profit and loss (being operating profit and profit before financing and income taxes), (2) disclosure of information about management-defined performance measures (MPMs), and (3) introduction of enhanced requirements for grouping (aggregation and disaggregation) of information. When the IASB conducts its Post Implementation Review (PIR) on IFRS 18, they will be interested in evaluating whether this standard has reached its objectives of providing more transparent and comparable information about companies’ performance.
In this workshop both the IASB (Ann Tarca) and EFRAG (Kathrin Schoene) will highlight the questions on which they would like to receive empirical evidence, so that in due time they can make informed decisions as to whether or not the adoption of IFRS 18 by preparers led to its intended consequences. The academic contributors being Ana Marques, Thorsten Sellhorn and Alfred Wagenhofer will shortly illustrate current available academic evidence that responds to the questions of the standard-setter and point at opportunities for novel academic research able to provide results that are informative to standard setters when evaluating whether IFRS 18 reached its intended objectives. The presentations will be followed by discussions with input from the workshop participants about additional future research opportunities.
Registration for participation in the workshop can be done here.
