IFRB 2026/05 IFRS 18 - practical effects on the statement of cash flows

IFRB 2026/05 IFRS 18 - practical effects on the statement of cash flows

IFR Bulletin 2026/05 explores the often-overlooked impact of IFRS 18 on the statement of cash flows.

 

While IFRS 18 is best known for changes to the statement of profit or loss, consequential amendments to IAS 7 may significantly affect cash flow presentation, classification and preparation, including operating cash flow reconciliations and the treatment of interest and dividends. A timely reminder for entities preparing for 1 January 2027 adoption.

The practical application of IFRS requires the timely assessment of amendments and their impact on financial reporting. Experts of BDO in Ukraine are available to provide advisory support and help with the implementation of the new standard requirements.

Contact us for further information.

Source: BDO Global
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Key Findings:

  • IFRS 18 affects not only the structure of the statement of profit or loss but also the preparation of the statement of cash flows through the related amendments to IAS 7.
  • The new requirements may change the approach to reconciling operating cash flows when the indirect method is applied.
  • Particular attention should be paid to the classification of interest and dividends, as the amendments may affect the presentation of cash flows in the financial statements.
  • Entities should assess the impact of IFRS 18 on their accounting policies, financial reporting processes and implementation readiness well in advance of the standard’s effective date of 1 January 2027.

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Key Contact

Oleg Malashchuk

Oleg Malashchuk

Key Audit Partner
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