IFRS 18 Presentation and Disclosure in Financial Statements

Under IFRS 18, which of the following financial statements is mandatory to present as per revised structure?

• Statement of Shareholder Wealth
• Statement of Cash Position
• Statement of Financial Performance
• Statement of Financial Position

IFRS 18 requires entities to group income and expenses in the statement of profit or loss by:

• Alphabetical order
• Operating, investing, and financing categories
• Their respective tax impact
• The size of the transaction

One major change under IFRS 18 is the introduction of subtotals. Which of the following is a required subtotal?

• EBITDA
• Operating profit
• Net cash from operations
• Total comprehensive income

Which item must be excluded from "operating profit" under IFRS 18?

• Sales revenue
• Income from associates and joint ventures
• Cost of sales
• General administrative expenses

An entity includes 'Dividend Income from Investments' in Operating Profit. According to IFRS 18, this is:

• Mandatory under all circumstances
• Required only if investments are long-term
• Incorrect - it should be under investing

• Correct - dividends are part of operating cash inflows

IFRS 18 requires disaggregation of material information in the notes. Which of the following is a valid method of disaggregation?

• By nature and by function
• By market and non-market
• By operating unit
• By geographical region only

Which is not a reason for presenting MPMs (Management Performance Measures) under IFRS 18?

• To enhance investor communication
• To provide supplemental insights
• To override IFRS-defined performance measures
• To disclose internal key metrics

According to IFRS 18, where should Management Performance Measures (MPMs) be presented?

• Only in the cash flow statement
• In the audit report
• In the notes to financial statements
• Within segment reporting

Which of the following best defines a Management Performance Measure (MPM) under IFRS 18?

• A subtotal of income/expenses adjusted by management not required by IFRS
• A third-party verified financial metric
• A standard IFRS-defined term
• A tax-adjusted earnings metric

An entity presents "Adjusted EBITDA" prominently in its statement of financial performance. Under IFRS 18, it must:

• Remove it from the statement
• Disclose it as an MPM in the notes
• Include it under cash flows
• Add it to other comprehensive income