AASB 18: What Changes for Australian Finance Teams

The headline

AASB 18 Presentation and Disclosure in Financial Statements, the Australian equivalent of IFRS 18, replaces AASB 101 for annual reporting periods beginning on or after 1 January 2027. For a 30 June year-end, the first affected year is the one beginning 1 July 2027, and comparatives mean preparation starts earlier.

Check applicability and any not-for-profit and public-sector variations with your auditor.

What actually changes

Three changes drive most of the work.

Income and expenses are classified into operating, investing and financing categories, with defined subtotals including operating profit

Management-defined performance measures that are used in public communication must be disclosed and reconciled in the notes

Greater aggregation and disaggregation requirements, and more structured information in the primary statements and notes

What it means for the ledger

The classification is only as good as the data under it. If your chart of accounts mixes operating and investing items, or relies on a manual overlay to build the statement, you will rebuild the overlay every period.

Account structure that maps cleanly to operating, investing and financing

Dimensions to carry the classification where the account alone cannot

A reconciled, documented set of management-defined measures

Comparative periods restated on the new basis

What to do in the next two quarters

Map your current chart to the new categories and list the accounts that do not map cleanly. Decide whether to fix the chart or to carry classification as a dimension. Prototype the new income statement from last year's data. Document the management-defined measures you use externally. Agree the approach with your auditor.

We have an IFRS 18 reporting blueprint that sets out the ledger design in one document.

Frequently asked questions

When does AASB 18 apply?

For annual reporting periods beginning on or after 1 January 2027, subject to applicability. Confirm with your auditor.

Does it change cash flow or the balance sheet?

The main changes are to the statement of profit or loss and the disclosures, with some consequential changes to cash flow presentation. Your auditor can confirm the detail for your entity.

Does Dynamics 365 support AASB 18?

The ledger and reporting tools can support it if the chart of accounts and dimensions are designed for it. We help you design that rather than rely on a feature toggle.

General information, not accounting or audit advice. Confirm applicability and detail with your auditor.

Last reviewed 2026-10-11

AASB 18: what changes for Australian finance teams.