The Applicability of IFRS 18 in Enhancing  Financial Disclosure

Section: Research Paper
Issue
Vol. 20 No. 70 (2026): Regional Studies Journal
Pages
403-426

Abstract

Research Idea: The requirements of International Financial Reporting Standard (IFRS 18) represent a structural shift in financial reporting and disclosure, reducing inconsistencies in the presentation of profit or loss by requiring entities to present specified subtotals. The study examines whether this greater standardization of presentation can enhance the transparency of financial disclosure.


Objective: The research aims to examine the key requirements of IFRS 18 concerning the presentation and disclosure of financial statements. Issued by the International Accounting Standards Board (IASB) in April 2024, IFRS 18 replaces IAS 1 and introduces new requirements for the presentation of financial performance, with the aim of improving transparency and comparability in financial reporting.


Methodology: The research adopts a descriptive approach by reviewing the requirements of standards issued by professional organizations and drawing on relevant academic theses and research studies. An assessment form was also used to examine a sample of companies listed on the Iraq Stock Exchange.


Results: The findings show that IAS 1 provides a general framework for the presentation of financial statements without prescribing a detailed structure for the statement of profit or loss, thereby allowing companies considerable flexibility in classifying income and expenses. IFRS 18, by contrast, represents a conceptual shift in financial statement presentation, particularly through its focus on the statement of profit or loss and related disclosures, while introducing requirements designed to enhance transparency and comparability across companies.


Conclusion: The research concludes that Iraqi companies should begin systematic preparations for adopting IFRS 18 in light of its effective date of 1 January 2027. They should promptly assess the standard’s implications for their accounting systems and financial classifications and prepare the required comparative information for 2026 to support a smooth transition to the new requirements.

Keywords:

IFRS18; IAS1; Disclosure; Companies.

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Authors

هالة عبد الهادي يحيى الصائغ

University of Mosul

Identifiers

DOI: 10.33899/rsj.v20i70.64316

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How to Cite

The Applicability of IFRS 18 in Enhancing  Financial Disclosure. (2026). مجلة دراسات إقلیمیة, 20(70), 403-426. https://doi.org/10.33899/rsj.v20i70.64316

Author Biographies

هالة عبد الهادي يحيى الصائغ (University of Mosul)

قسم المحاسبة / مدرس 

منال ناجي صالح

قسم المحاسبة / مدرس

رغد هاشم يحيى

قسم المحاسبة / مدرس

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

The Applicability of IFRS 18 in Enhancing  Financial Disclosure. (2026). مجلة دراسات إقلیمیة, 20(70), 403-426. https://doi.org/10.33899/rsj.v20i70.64316