Written by the operator
IFRS 18, for the people who have to apply it
One question per article, answered in the order a controller needs it: what the standard says, what it means for your statement, and what to record. Every one names something it does not settle.
Two changes, and the second is the one that catches people. Where interest and dividends go is no longer a policy choice, and the two statements must now agree.
Yes, and the consequence is that the work starts a year before the standard applies. Whether your comparative year has already begun depends on your year end.
A new assessment, a genuine judgement, and the gate every interest and dividend classification hangs off. What the tests are and what to write in the file.
The first real task of implementation. Which accounts are contentious, where the mapping will be wrong the first time, and how to record it.
Yes. Operating is the only category defined by what is left over, and that has real consequences for what ends up in your operating profit subtotal.
Three tests, all of which have to hold. The measures that catch people are the ones used in a results presentation but never printed in the statements.
Interest received on cash becomes investing, not financing, for most entities. The exception is the whole question, and it turns on one assessment.