Nairobi, April 28 -- IFRS 18, the new IFRS accounting standard effective from 1 January 2027, introduces three main changes; the presentation of newly defined subtotals in the income statement, new requirements for identifying management-defined performance measures (MPMs) and principles for the grouping and labelling of items.

It is important to note that IFRS 18 does not change how organisations recognise and measure items in their financial statements. Therefore, IFRS 18 would not affect an organisation's overall financial performance and financial position.

While IFRS 18 is expected to affect all organisations that apply IFRS accounting standards, the new standard's impact will vary depending on the processes applied by an organisat...