IFRS Standards Update: The Revolution in Financial Statement Presentation (IFRS 18) and Amendments Planned for 2026

IFRS standards are undergoing significant changes, requiring prior preparation by the entities concerned, particularly about the adoption of IFRS 18, which will significantly transform the presentation of financial statements.

Changes in the Presentation of Financial Statements

The introduction of IFRS 18 represents the most significant change to financial reporting standards in more than two decades. This new standard aims to increase the transparency and comparability of financial information disclosed by companies. It introduces three main innovations aimed at improving the presentation of the information provided.

Main innovations:

• The revised income statement now features new, distinct categories for income and expenses—operating, investing, and financing—to enhance its structure.

• Companies are required to provide explanations of the performance indicators defined by management and presented in the income statement.

• Certain entities, such as banks and insurers, are subject to specific provisions.

Learn more:

https://www.ifrs.org/content/dam/ifrs/news/2024/ifrs-18/ifrs-18-french.pdf

Amendments Planned for 2026

In 2024, new amendments to IFRS 7 and IFRS 9 were published. They apply for annual periods beginning on or after January 1, 2026.

• Financial Liabilities and Electronic Payments

The amendments on financial liabilities and electronic payments clarify the treatment of financial liabilities settled through electronic payment systems.

• Green Electricity Contracts:

The amendments to green electricity contracts apply to agreements for electricity generated from renewable sources.

Learn more:

https://doc.cncc.fr/docs/ifrs-7-instruments-financiers-in