The New Structure of the Profit or Loss Statement in IFRS 18 Presentation and Disclosure in Financial Statements and Preliminary Assessment of the Current Situation: A Research of the Transitional Period on the Retail Sector

İlknur Ergün

Article Details

The New Structure of the Profit or Loss Statement in IFRS 18 Presentation and Disclosure in Financial Statements and Preliminary Assessment of the Current Situation: A Research of the Transitional Period on the Retail Sector

Authors:

İlknur Ergün

Publisher:

Anadolu University

Main Topics:

Finansal Muhasebe

Journal:

Anadolu Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue 2, pp.399-420

Document Type:

Article

Publication Date:

6/2025

Document Language:

Turkish

Document ID (Org No.):

2001352581

pISSN:

2667-8683

Keywords:

Abstract:

 The International Accounting Standards Board IASB has issued IFRS 18 Presentation and Disclosures of Financial Statements, which will replace IAS 1 Presentation of Financial Statements and be effective from January 2027. The draft text published by the Public Oversight Accounting and Auditing Standards Authority POA in Turkey is expected to be implemented in parallel with international regulations. The objective of IFRS 18 is to guarantee the comparability and transparency of information presented in financial statements. The most significant alterations pertain to the introduction of new categories in the profit and loss statement, revised subtotals, new principles for income and expenses, and management performance criteria. The aim of the study is to explain the new structured presentation of the income statement, in which the main changes have occurred, and to determine the level of compliance with the new principles and rules by retail sector. A comparison of the profit or loss statements and financial reports of the BIST retail companies for 2023 showed that the level of compliance of the companies was very low. The companies income statements dont include profit before finance and tax and the discontinued operations category and do not group income and expenses as required by IFRS 18. In this light, it is concluded that the operating profit or loss totals of many companies will change when the new standard is applied. To achieve a more transparent and comparable presentation, companies should understand the new principles and rules of the standard and make preliminary preparations before implementation.

 The International Accounting Standards Board IASB has issued IFRS 18 Presentation and Disclosures of Financial Statements, which will replace IAS 1 Presentation of Financial Statements and be effective from January 2027. The draft text published by the Public Oversight Accounting and Auditing Standards Authority POA in Turkey is expected to be implemented in parallel with international regulations. The objective of IFRS 18 is to guarantee the comparability and transparency of information presented in financial statements. The most significant alterations pertain to the introduction of new categories in the profit and loss statement, revised subtotals, new principles for income and expenses, and management performance criteria. The aim of the study is to explain the new structured presentation of the income statement, in which the main changes have occurred, and to determine the level of compliance with the new principles and rules by retail sector. A comparison of the profit or loss statements and financial reports of the BIST retail companies for 2023 showed that the level of compliance of the companies was very low. The companies income statements dont include profit before finance and tax and the discontinued operations category and do not group income and expenses as required by IFRS 18. In this light, it is concluded that the operating profit or loss totals of many companies will change when the new standard is applied. To achieve a more transparent and comparable presentation, companies should understand the new principles and rules of the standard and make preliminary preparations before implementation.

 The International Accounting Standards Board IASB has issued IFRS 18 Presentation and Disclosures of Financial Statements, which will replace IAS 1 Presentation of Financial Statements and be effective from January 2027. The draft text published by the Public Oversight Accounting and Auditing Standards Authority POA in Turkey is expected to be implemented in parallel with international regulations. The objective of IFRS 18 is to guarantee the comparability and transparency of information presented in financial statements. The most significant alterations pertain to the introduction of new categories in the profit and loss statement, revised subtotals, new principles for income and expenses, and management performance criteria. The aim of the study is to explain the new structured presentation of the income statement, in which the main changes have occurred, and to determine the level of compliance with the new principles and rules by retail sector. A comparison of the profit or loss statements and financial reports of the BIST retail companies for 2023 showed that the level of compliance of the companies was very low. The companies income statements dont include profit before finance and tax and the discontinued operations category and do not group income and expenses as required by IFRS 18. In this light, it is concluded that the operating profit or loss totals of many companies will change when the new standard is applied. To achieve a more transparent and comparable presentation, companies should understand the new principles and rules of the standard and make preliminary preparations before implementation.

 Uluslararası Finansal Raporlama Standardı UFRS 18 Finansal Tablolarda Sunum ve Açıklama, Uluslararası Muhasebe Standardı UMS 1 Finansal Tabloların Sunuluşu standardının yerini alarak 2027 yılından itibaren uygulanmak üzere Uluslararası Muhasebe Standartları Kurulu UMSK tarafından yayımlanmıştır. Ülkemizde de Kamu Gözetimi Muhasebe ve Denetim Standartları Kurumu KGK tarafından kamuoyuna sunulan Taslak Metnin uluslararası düzenlemelere paralel olarak uygulanması beklenmektedir. UFRS 18 ile finansal tablolardaki bilgilerin karşılaştırılabilirliğini ve şeffaflığını arttırmak amaçlanmaktadır. Standartta yer alan başlıca değişiklikler, kâr ve zarar tablosunda yeni kategorilere yer verilerek, yeni ara toplamlar ile sunum yapılması, sunumda yer alan gelir ve giderlerin gruplandırılması için yeni ilkelerin eklenmesi, finansal tablo dipnotlarında, yönetim tarafından tanımlanan performans ölçütlerine ilişkin açıklamaların yapılmasıdır. Çalışmada, en önemli değişikliklerin meydana geldiği kâr veya zarar tablosunun yapılandırılmış yeni sunumunun açıklanması ve perakende sektöründe faaliyet gösteren işletmelerin yeni ilke ve kurallara uyum düzeylerinin tespit edilmesi amaçlanmaktadır. Borsa İstanbul BİSTda perakende sektöründe faaliyet gösteren işletmelerin 2023 yılı kâr ve zarar tabloları ile finansal raporları incelenerek, UFRS 18 gereklilikleri ile karşılaştırılmış ve işletmelerin uyum düzeylerinin çok düşük olduğu tespit edilmiştir. İşletmelerin kâr veya zarar tablolarında, finansman ve vergi öncesi kâr ile durdurulan faaliyetler kategorisinin yer almadığı, gelir ve giderlerin UFRS 18de belirtilen şekilde gruplandırılmadığı görülmüştür. Bu kapsamda yeni standart uygulanmaya başlandığında pek çok işletmenin esas faaliyet kâr veya zarar toplamlarının değişeceği sonucuna varılmıştır. İşletmelerin daha şeffaf ve karşılaştırılabilir bir sunum için, standardın yeni ilke ve kurallarını anlayarak, standardı uygulamaya başlamadan önce ön hazırlık yapmaları önerilmektedir.

Article Details

The New Structure of the Profit or Loss Statement in IFRS 18 Presentation and Disclosure in Financial Statements and Preliminary Assessment of the Current Situation: A Research of the Transitional Period on the Retail Sector

Authors:

İlknur Ergün

Publisher:

Anadolu University

Main Topics:

Finansal Muhasebe

Journal:

Anadolu Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue 2, pp.399-420

Document Type:

Article

Publication Date:

6/2025

Document Language:

Turkish

Document ID (Org No.):

2001352581

pISSN:

2667-8683

IFRS 18 Profit or Loss Statement

Aggregation and Disaggregation of Income and Expenses

Transparent Presentation

Retail SectorUFRS 18 Kâr veya Zarar Tablosu

Gelir ve Giderlerde Birleştirme ve Ayrıştırma

Şeffaf Sunum

Perakende Sektörü

Issues

Article Details

Authors: İlknur Ergün

Publisher: Anadolu University

Main Topics: Finansal Muhasebe

Journal: Anadolu Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue 2, pp.399-420

Document Type: Article

Publication Date: 6/2025

Document Language: Turkish

Document ID (Org No.): 2001352581

pISSN: 2667-8683

Issues

Authors:

İlknur Ergün

Publisher:

Anadolu University

Main Topics:

Finansal Muhasebe

Journal:

Anadolu Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue 2, pp.399-420

Document Type:

Article

Publication Date:

6/2025

Document Language:

Turkish

Document ID (Org No.):

2001352581

pISSN:

2667-8683