EARLIER this April, the International Accounting Standards Board (IASB) issued a new accounting standard, IFRS 18 – Presentation and Disclosure in Financial Statements, to replace the current IAS 1 – Presentation of Financial Statements.

The new standard, effective in 2027 (with earlier application permitted), will herald one of the most important developments we have ever seen for the income statement.

Indeed, IASB chair Andreas Barckow described it as the most significant change to companies’ presentation of financial performance since the introduction of IFRS (International Financial Reporting Standards) over 20 years ago.