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 of the following is not classified under operating category in IFRS 18's profit or loss structure?

• Revenue from sales
• Fair value gains on investment property
• Selling expenses
• Cost of goods sold

IFRS 18 removes the option to classify expenses by:

• Nature
• Function
• Department
• A mixed approach (function and nature combined)

IFRS 18 affects which section of the annual report the most?

• Primary financial statements
• Auditor's opinion

• Risk disclosure
• Corporate governance report

Why was IFRS 18 introduced to replace parts of IAS 1?

• To improve comparability and transparency
• To reduce preparer workload
• To focus more on sustainability
• To introduce ESG disclosures