IASB proposes IFRS Accounting Taxonomy update for IFRS 18

The International Accounting Standards Board (IASB) today published proposals to amend the IFRS Accounting Taxonomy to reflect the new presentation and disclosure requirements introduced in IFRS 18 Presentation and Disclosure in Financial Statements.

IFRS 18 enhances the structure of the statement of profit or loss and improves comparability of information about companies’ financial performance—alongside introducing specific disclosure requirements for management-defined performance measures and specified expenses by nature. The proposed update intends to facilitate comparability and analysis of tagged information.

The proposed changes include:

• line-item modelling for conveying category information (such as, operating, investing, financing) for the statement of profit or loss; and
• dimensional modelling for tagging disclosures on management-defined performance measures (MPMs) and specified expenses by nature, as these link to information in the statement of profit or loss.

Read and comment on the Proposed Taxonomy Update

The IASB is inviting feedback on these proposals. The deadline for submitting comments is 3 September 2024. The IASB will analyse the feedback and make the necessary changes before finalising the IFRS Accounting Taxonomy Update for IFRS 18.

• IFRS Accounting Taxonomy 2024—Proposed Update 1 IFRS 18 Presentation and Disclosure in Financial Statements 
• Submit a comment letter or survey response.

Request for fieldwork participants

The IASB will also conduct a fieldwork exercise during the consultation period. The IASB is seeking participants who are involved in tagging and using digital financial statements.

Read the full details in the request for fieldwork participants; we ask stakeholders to express their interest by 14 June 2024.

Video overview

Watch this video in which IASB Member Ann Tarca gives an overview of the proposed updates to the IFRS Accounting Taxonomy.

More information on digital financial reporting

• The new Digital financial reporting webpage includes educational material that introduces and explains the Taxonomy.
• The IFRS Accounting Taxonomy webpages contain information about the Taxonomy and its development.

The IFRS Accounting Taxonomy facilitates the reporting of information in a computer-readable format. Digital reporting improves communication between companies and users of financial statements that comply with IFRS Accounting Standards. More than 90% of listed companies (by market capitalisation) are required to undertake digital financial reporting to some extent.^[1]

^[1]Digital financial reporting—Facilitating digital comparability and analysis of financial reports