Presentation and Disclosure in Financial Statements
The new standard that reshapes how the income statement is structured — replacing IAS 1, effective 1 January 2027.
How income and expenses must now be classified
Operating Core business
The default category. It captures income and expenses from the entity’s main business activities — everything that doesn’t belong in one of the other four categories.
Investing Returns on assets
Income and expenses from assets that generate a return largely independent of the entity’s core operations — such as investment properties, associates, and joint ventures.
Financing Cost of capital
Income and expenses related to borrowing — interest on loans and lease liabilities — plus the effects of financing activities. This keeps operating performance separate from how a company is funded.
Income Taxes IAS 12
All tax income and expense arising from applying IAS 12, kept in its own separate category rather than mixed with operating results.
Discontinued Operations IFRS 5
Results of operations that have been sold or are held for sale, reported separately so that ongoing, continuing performance is not distorted by exited businesses.
Mandatory Subtotals
IFRS 18 requires two new subtotals on the face of the income statement: Operating profit and Profit before financing and income taxes — presented even when they are the same amount. This gives every company a common, comparable performance line for the first time.