The new income statement according to IFRS 18: Practical questions arising from the conversion processes and the answers
IFRS 18 is coming. For financial years from January 1, 2027, the new breakdown scheme applies, and the comparative figures from 2026 must already be prepared accordingly. Many finance teams are in the middle of the transition process and come across detailed questions that the standard does not clearly answer.
This white paper addresses precisely these questions. It explains the new structure of the income statement, highlights current decisions of the IFRS Interpretations Committee (IFRS IC) and gives you formal concrete guidance for your transition.
What to expect
1. The new structure
Five categories, two optional subtotals, and a clear logic: This is how the new income statement under IFRS 18 works.
2. Subdivision of the category Operating
Breakdown of expense types, functional breakdown, or a hybrid form? Which option is appropriate for your company and what IFRS 18 now expressly permits.
3. Detailed questions from practice
The five most common doubts arising from ongoing conversion processes, including the current IFRS IC decisions:
- Currency results from intra-group transactions
- Gains and losses from currency derivatives
- Disclosure of corporate taxes outside the scope of IAS 12
- Income Tax-Related Benefits
- Appendix listing the types of expenses
4. Outlook
What remains open after the first IFRS IC decisions and how you can prepare yourself for further application questions.
Written by Professor Carsten Theile, this white paper provides practical answers to the questions that currently concern finance teams.
