IFRS Accounting Taxonomy Update—Primary Financial Statements

The IASB met on 19 November 2024 to discuss the proposals set out in Proposed IFRS Taxonomy Update 1 IFRS 18 Presentation and Disclosure in Financial Statements. The IASB discussed potential refinements to the proposed modelling for:

• the disclosures on management-defined performance measures (MPMs) (Agenda Paper 25A); and
• the statement of profit or loss and the disclosures on specified expenses by nature (Agenda Paper 25B).

Management-defined performance measures (Agenda Paper 25A)

The IASB tentatively decided to include detailed modelling in the 2025 IFRS Accounting Taxonomy with some targeted changes to the proposals:

1. to provide a structural link between an MPM and the measure in IFRS Accounting Standards it adjusts by:
   1. not adding an MPM line-item element; and
   2. adding an axis for ‘Components of management-defined performance measure’ with a pre-defined member representing the MPM value; and
2. to develop a formula/validation rule to express the reconciliation from the measure in IFRS Accounting Standards to the MPM.

All 14 IASB members agreed with this decision.

Statement of profit or loss and other proposals (Agenda Paper 25B)

The IASB tentatively decided to adjust the modelling for the statement of profit or loss, specifically:

1. to change the labels of specific elements with the reference type ‘common practice’ that are expected to be used only for presentation so that the labels reflect the expected presentation category;
2. to add category elements for specific elements with the reference type ‘disclosure’ or ‘example’;
3. to remove the label ‘total’ from elements that might be classified in more than one category by a single company or in different categories for different companies; and
4. to change the allocation of specific elements between presentation groups.

Thirteen of 14 IASB members agreed with decision (a), subject to reviewing the elements in the pre-ballot draft. All 14 IASB members agreed with decisions (b)–(d).

The IASB also tentatively decided to make changes to the proposed modelling for the disclosures on specified expenses by nature, specifically:

1. to remove the line-item elements representing totals of specified expenses by nature from the dimensional table and include them under a separate abstract element; and
2. to enable the use of calculation relationships for the specified expenses by nature note.

All 14 IASB members agreed with these decisions.