Overview of The Statement of Profit or Loss in The Context of IFRS 18 Presentation And Disclosure in Financial Statements
DOI:
https://doi.org/10.63556/tisej.2025.1526Keywords:
IAS 1, IFRS 18, Statement of profit or loss, Presentation, Entities with or without specified main business activitiesAbstract
International Financial Reporting Standards have been gradually adopted by publicly accountable entities since 2005 in the global context. The aim of the standards is to ensure that financial statements present the financial position, performance and cash flows of entities transparently, comparatively and faithfully. One of the regulations within this scope is the IAS 1 Presentation of Financial Statements standard, which specifies which financial statements and how these financial statements should be prepared by these entities. In this research, the advances that will occur in the statement of profit or loss of the IFRS 18 Presentation and Disclosure in Financial Statements standard, which will enter into force in 2027 and replace the IAS 1 Presentation of Financial Statements standard, are discussed with an overview. The provisions of the standard regarding statement of profit or loss are compared with both the current IAS 1 standard and the draft of IFRS 18, ED/2019/7, and the changes that will occur in the statement of profit or loss are discussed within the framework of entities with and without specified main business activities. The statement profit or loss in compliance with IFRS 18 is exemplified within the scope of manufacturing entities in entities without specified main activity, and within the scope of financing, banking, and insurance entities in entities with specified main business activities. It is expected that this standard will provide significant comparability in the statements of profit or loss of publicly accountable entities.
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