Briefly, IAS 1 and IFRS 18 are both related to financial reporting. IAS 1 shows flexibility in such reporting while IFRS 18 provides clarity, precision, and more comparability. That’s why the world will be shifting from IAS 1 to IFRS 18, as from 2027, for better disclosure and transparency in financial reporting.

Prof-Dr-Ahmed Al-Baidhani أ. د. احمد البيضاني Thank you very much for your valuable input. I truly appreciate your time and effort in answering my question.

Transitioning from IAS 1 to IFRS 18 in financial statement presentation presents several critical challenges for companies. These challenges stem primarily from the fundamental changes introduced by IFRS 18 in the structure, categorization, and transparency of financial statements. The most critical challenges include:

In conclusion, while IFRS 18 aims to enhance comparability and transparency, its adoption demands careful planning, cross-functional collaboration, and adequate resource allocation. Companies that proactively assess the impacts and develop structured implementation plans will be better positioned to achieve a smooth transition.

Meri Muҫelli Thank you very much for your valuable input. I truly appreciate your time and effort in answering my question.

• Reprocessing historical data to align with new categories.
• Adjusting internal accounting systems to track both perspectives simultaneously during the changeover period.
• then there are also jurisdictional issues, where some countries delay implementation affecting multinationals

The key challenges when transitioning from IAS 1 to IFRS 18 include adjusting to the revised presentation and disclosure requirements, ensuring consistent classification of items, and managing the impact of new standards on financial statement layout and comparability. Companies also need to reassess their accounting policies and systems to align with the updated framework.

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