IFRS 18: A New Approach to the Presentation of Financial Information

Abstract

This article examines the structural and methodological changes introduced by IFRS 18 and their impact on financial reporting. The standard improves the presentation of financial statements by enhancing their transparency, comparability, and consistency, whilst placing greater emphasis on the interests of investors. The study investigates key changes to the structure of a complete set of financial statements, including new requirements for presentation, disclosure, and the use of management-defined performance measures (MPMs). The analysis shows that IFRS 18 aims to structure the reporting practices, reduce information asymmetry, and enhance the transparency of financial data. The article also analyses the principles of aggregation and disaggregation of information and the anticipated broader direction of accounting development under the new standard. The new direction of accounting development is creating a strong connection with management. CZU: 006.32:657.375; JEL: M41