HKFRS 18 Presentation and Disclosure in Financial Statements
Technical Resources
This webpage contains pronouncements, guides and articles that are relevant to HKFRS 18 Presentation and Disclosure in Financial Statements.
Effective Date
Financial periods beginning on or after 1 January 2027. Earlier application is permitted.
Affected standards
Supersedes HKAS 1 Presentation of Financial Statements and amends several
other standards, including HKAS 7 Statement of Cash Flows and HKAS 8
Basis of Preparation of Financial Statements.
Why do we need a new Accounting Standard?
HKFRS Accounting Standards do not have detailed requirements on where to classify
income and expenses in the statement of profit or loss; what subtotals to present
above “profit or loss” in the statement of profit or loss; or how to group the
information to be presented in the primary financial statements or disclosed in the notes.
This lack of detailed requirements leads to diversity in practice. Companies define their own subtotals and performance measures and group items in their own ways. Investors commented that this diversity makes it difficult to analyse and compare companies’ performance.
HKFRS 18 introduces three new sets of requirements to improve how companies communicate their financial performance in the statement of profit or loss. The new requirements in HKFRS 18 will give investors more transparent and comparable information about companies’ financial performance, thereby enabling better investment decisions.
- Adding three defined categories and two subtotals to the statement of profit or loss makes companies’ financial performance easier to compare and provides a consistent starting point for investors’ analysis.
- Requiring companies to disclose information about management-defined performance measures increases discipline over their use and transparency about their calculation.
- Setting out requirements on whether information should be in the primary financial statements or the notes and providing principles on the level of detail needed improves effective communication of information.
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Focus:
HKICPA Implementation Support for HKFRS 18
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The indicative timeline for the HKFRS 18 Navigator and HKFRS 18 webcasts is set out below.
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Supporting materials issued by the IASB
- IFRS 18 implementation webpage
- Short video of IASB Chair summarising the new requirements
- One-page quick view of IFRS 18
- Project Summary — overview of the project in non-technical language
- Effects Analysis — description of the likely benefits and costs of IFRS 18
- Feedback Statement — summary of feedback on proposals and the IASB’s response to feedback
- Reference materials — comparison table of requirements in IAS 1 and IFRS 18 showing changes to each paragraph of IAS 1
- Educational material — Going concern: A focus on disclosure
Useful references issued by other organisations
BDO
- HKFRS/IFRS 18 – Presentation and Disclosure in Financial Statements
- International Financial Reporting Bulletin 2024/4
Deloitte
EY
- A closer look at IFRS 18
- A closer look at IFRS 18-Appendix – Additional considerations for banks
- IFRS Developments-IASB issues IFRS 18
- IFRS 18 illustrative financial statements
KPMG
- Presentation and disclosure
- How companies communicate financial performance is changing
- IFRS 18 Presentation and Disclosure in Financial Statements
PwC
- IFRS 18 is here: redefining financial performance reporting
- IFRS 18 – Insights for financial services companies
- IFRS 18 – Key treasury topics for corporate entities
Last updated: March 2026
