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IDW publishes IFRS 18 Q&A – Overview of the most important content
- The new IDW Q&A on IFRS 18 provides guidance for the new reporting requirements.
- Summarizes key innovations in income statement structure, aggregation/disaggregation, and MPMs.
- It also contains practical advice on the transitional provisions.
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With the new Q&A on IFRS 18, the IDW is providing companies with compact assistance for the first time in aligning their reporting with the new requirements. The focus is on the central reorganization of the income statement, expanded disclosure requirements and practical advice for a smooth transition.
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At the end of November, the IDW published its Questions and Answers paper on IFRS 18, providing a structured orientation for practical implementation for the first time. As many companies are already working on converting their reporting, the Q&A comes at just the right time. It addresses the key innovations that IFRS 18 brings with it, in particular the new structure of the income statement, the mandatory subtotals and the allocation of income and expenses to the five categories.
A clear focus of the Q&A is on the new requirements for the aggregation and disaggregation of items. These affect not only the income statement, but also the other primaries and the information in the notes. In addition, the IDW provides information on the new disclosure requirements for so-called management-defined performance measures.
The transitional provisions are also addressed. The Q&A includes an example of what a reconciliation statement for the previous year could look like. This provides a good basis for planning the initial application. The ongoing discussion on currency differences from intercompany loans is also briefly mentioned, to which the IDW has also sent a letter with its opinion to the IFRS IC.
The Questions and Answers paper on IFRS 18 is available for IDW members for download (only in German). Non-members have the option of purchasing the paper as print-on-demand.