Primary financial statements


The Agenda consultation 2015 revealed that respondents wanted the Board to prioritise projects that are important to users of financial statements, including the disclosure initiative and the primary financial statements project. The IASB undertook the primary financial statements project in response to investors' concerns about the comparability and transparency of companies’ performance reporting and took up discussions in the project in April 2016.

It continued discussions through May 2019 with the scope slowly taking shape during that time and (i) a fundamental revision of the statements of financial position, cash flows and changes in equity, (ii) guidance on the content of OCI and timing of recycling, (iii) segment reporting, and (iv) the presentation of discontinued operations being excluded from the scope of the project.

Rather, the Board decided to focus on four main areas:

  • Introduction of defined subtotals and categories in the statement of profit or loss
  • Introduction of requirements to improve aggregation and disaggregation
  • Introduction of Management Performance Measures (MPMs) and accompanying disclosures in financial statements
  • Introduction of targeted improvements to the statement of cash flows

In May 2019, the Board decided that a discussion paper is not required and that as a next project step, the Board would develop an exposure draft for a new standard replacing IAS 1 Presentation of Financial Statements. The related requirements in IAS 1 would be brought forward to the new standard with limited wording changes. Other requirements of IAS 1 would be moved to IAS 8 and IFRS 7.

An exposure draft of a proposed new standard was published on 17 December 2019. On 17 April 2020, the comment period on the exposure draft was extended until 30 September 2020. The IASB discussed feedback on the exposure draft in December 2020 and January 2021 and redeliberated the proposals from March 2021 to June 2023. The IASB published the new IFRS 18 Presentation and Disclosure in Financial Statements on 9 April 2024.


Current status of the project

This project has been completed. The IASB published IFRS 18 Presentation and Disclosure in Financial Statements on 9 April 2024. IFRS 18 will be effective for annual periods beginning on or after 1 January 2027 with earlier application permitted.


Project milestones

Date Development Comments
April 2016 Project initially discussed by the Board
May 2019 The Board decides that the next due process document will be an exposure draft, not a discussion paper
17 December 2019 ED/2019/7 General Presentation and Disclosures published Comments requested by 30 June 2020
17 April 2020 Comment period on the exposure draft extended until 30 September 2020
9 April 2024 IFRS 18 Presentation and Disclosure in Financial Statements issued The new standard is effective for annual periods beginning on or after 1 January 2027.


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