The introduction of IFRS 18 represents one of the most significant changes to financial statement presentation and disclosure requirements in recent years. IFRS 18 replaces IAS 1 and introduces new requirements for the structure of the statement of profit or loss, management-defined performance measures (MPMs), aggregation and disaggregation principles, and enhanced transparency in financial reporting.

This intensive one-day course is designed to provide finance professionals with a comprehensive understanding of IFRS 18, its practical implications, implementation requirements, and impact on financial reporting, performance measurement, and stakeholder communication.

The program runs for one day, on 15 October 2026, from 9:00 AM to 3:00 PM, at Symphony Style Hotel, Kuwait. It is delivered bilingually (Arabic and English) by Mohamed Khamis, DBA.

This program is suitable for:

• Finance professionals.

1. Introduction to IFRS 18 and Recent Developments in Financial Reporting

• 1.1 Evolution of Financial Statement Presentation: Historical development of presentation standards; limitations identified in IAS 1; global demand for improved transparency and comparability.
• 1.2 Objectives of IFRS 18: Enhancing comparability among entities; improving communication of financial performance; increasing transparency of management reporting; strengthening disclosure quality.
• 1.3 Effective Date and Transition Requirements: Mandatory application date; comparative information requirements; early adoption considerations; transition planning framework.

Interactive discussion: How do investors and management currently assess operating performance, and what reporting challenges exist under existing presentation practices?

2. Fundamental Principles of IFRS 18

• 2.1 Scope of IFRS 18: Entities subject to IFRS 18; relationship with other IFRS Standards; interaction with accounting policies and disclosures.
• 2.2 Core Objectives of Financial Statement Presentation: Faithful representation; relevance; comparability; understandability; transparency.
• 2.3 Structure of Financial Statements under IFRS 18: Statement of Financial Position; Statement of Profit or Loss; Statement of Changes in Equity; Statement of Cash Flows; Notes on Financial Statements.

Practical exercise: Identify reporting deficiencies in sample financial statements and discuss how IFRS 18 addresses them.

3. New Structure of the Statement of Profit or Loss

• 3.1 Introduction to New Profit or Loss Categories (the five required categories): Operating category (definition, included income and expenses, determining operating profit); investing category (investment-related income and expenses, returns from standalone investments); financing category (interest expenses, financing-related income and costs); income taxes; discontinued operations.
• 3.2 Mandatory Subtotals: Operating profit; profit before financing and income taxes; profit before tax.
• 3.3 Special Considerations: Main business activities; investment entities; financial institutions; holding companies.

Workshop: Participants classify transactions into the appropriate IFRS 18 categories.

4. Management-Defined Performance Measures (MPMs)

• 4.1 What Are MPMs?: Examples: Adjusted EBITDA; Core Operating Profit; Normalized Earnings; Adjusted Net Income.
• 4.2 Why IFRS 18 Introduced MPM Requirements: Investor concerns; lack of consistency; transparency challenges.
• 4.3 Disclosure Requirements for MPMs: Definition of the measure; purpose of use; reconciliation to IFRS measures; explanation of changes.

5. Aggregation and Disaggregation Principles

• 5.1 Importance of Meaningful Presentation: Avoiding excessive aggregation; avoiding unnecessary detail.
• 5.2 Materiality Considerations: Qualitative factors.
• 5.3 New Disaggregation Requirements – classification by: Nature; function; operating characteristics.
• 5.4 Disclosure of Operating Expenses – presentation alternatives: By nature; by function.

Case study: Evaluate disclosures and determine whether information has been appropriately aggregated or disaggregated.

Training Methodology

• Instructor-led presentations.
• Interactive discussions.
• Real-world financial statement examples.
• Practical exercises.
• Group workshops.
• Financial reporting simulations.
• Knowledge assessments.

Upon completion of this program, participants will be able to:

• Understand the objectives, scope, and requirements of IFRS 18.
• Identify the major differences between IAS 1 and IFRS 18.
• Apply the new categories and subtotals required in the statement of profit or loss.
• Understand and disclose Management-Defined Performance Measures (MPMs).
• Apply aggregation and disaggregation principles effectively.
• Assess the impact of IFRS 18 on financial reporting processes and systems.
• Evaluate implementation challenges and transition requirements.
• Prepare financial statements that comply with IFRS 18 requirements.
• Analyze the implications for auditors, regulators, investors, and management.