IFRS 18 – Changes in the presentation of categories that shape comprehensive income: Theoretical and practical implications

<ns3:p>Purpose: The objective of the article is to assess the changes in the presentation of comprehensive income in financial statements prepared under IFRS, comparing IAS 1 and IFRS 18. The article also examines practical implications for financial analysis and proposes an alternative statement structure to improve its usefulness for investors and analysts.Methodology/approach: The study involves a detailed analysis of IFRS 18 and compares it to IAS 1. Using synthesis and inference, it identifies key differences and evaluates their impact on financial reporting quality and transparency.Findings: IFRS 18 introduces clearer rules for reporting comprehensive income, reducing some discretion previously allowed by IAS 1. However, it does not clearly distinguish between realized transactions and the effects of revaluation. The proposed alternative structure supports more in-depth financial analysis, offering indicators that are more useful to key stakeholders.Research limitations/implications: The findings are relevant to both researchers and practitioners. They improve the assessment of financial performance stability and support more informed investment decisions. Further research is needed to assess the effects of IFRS 18 on evaluating financial condition and reporting quality.Originality/value: The article contributes to accounting knowledge through a detailed comparison of IFRS 18 and IAS 1 and by proposing a new structure for presenting comprehensive income. This enhances the transparency and usefulness of financial statements, improving decision-making by investors and analysts.</ns3:p>