New Standard AASB 18 issued

Friday, June 14, 2024

The AASB has issued AASB 18 Presentation and Disclosure in Financial Statements to improve how entities communicate in their financial statements, with a particular focus on information about financial performance in the statement of profit or loss.

The key presentation and disclosure requirements established by AASB 18 are:

• the presentation of newly defined subtotals in the statement of profit or loss;
• the disclosure of management-defined performance measures; and
• enhanced requirements for grouping information (i.e. aggregation and disaggregation).

These new requirements will enable investors and other financial statement users to make more informed decisions, including better allocations of capital, that will contribute to long-term financial stability.

AASB 18 will replace AASB 101 Presentation of Financial Statements.

For for-profit entities (other than superannuation entities applying AASB 1056 Superannuation Entities) preparing Tier 1 general purpose financial statements, AASB 18 applies to annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. 

For not-for-profit private sector entities, not-for-profit public sector entities and superannuation entities applying AASB 1056, AASB 18 applies to annual reporting periods beginning on or after 1 January 2028.  Earlier application is also permitted for these entities.  This delayed date will allow the AASB to consult with stakeholders to assess whether AASB 18 should be amended for application by these entities.

AASB 18 incorporates IFRS 18 and makes consequential amendments to most of the AASB pronouncements.