Workshop Overview

This seminar provides a crucial deep dive into FRS 118, "Presentation and Disclosure of Financial Statements," the new standard set to replace FRS 1 for annual periods beginning on or after 1 January 2027. Issued by the Accounting Standards Committee (ASC) and aligned with the international IFRS 18, this standard represents the most significant change to financial statement presentation in years. The session will focus intently on the substantial differences from the current FRS 1, equipping attendees with the knowledge to navigate this fundamental shift in reporting requirements.

Participants will gain practical insights into the core components of FRS 118, including the new mandatory structure for the income statement, the strict disclosure rules for management-defined performance measures (MPMs), and enhanced principles for the aggregation and disaggregation of financial data. The event will culminate with illustrative examples and guidance on the transition, offering a clear roadmap for implementation to ensure preparedness for this transformative change in financial reporting.

Programme Outline

FRS 118 at a glance

o   Key impacts

o   Key actions

Income statement structure

o   Classifying income and expenses

o   Analysis of operating expenses

o   Income and expenses totals and subtotals

Management-defined performance measures (MPM)

o   What are MPMs

o   Where to include MPMs

o   What to disclosure for MPMs

Aggregation and disaggregation

o   Principles of aggregation and disaggregation

o   Guidance for labels and descriptions

Other changes for the financial statements

o   Statement of cash flows

o   Balance sheet

o   Earnings per share disclosures

Transition to FRS 118

Illustrative examples

o   Statement of profit or loss for an entity that is a manufacturer

o   Statement of profit or loss for an entity that is a manufacturer that provides financing to customers as a main business activity

o   Note – specified expenses by nature

o   Note – management-defined performance measures

Key Event Takeaways

Attending this seminar will provide participants with a clear understanding of:

1. A Major Overhaul of Financial Statement Presentation: This is not a minor update. FRS 118 fundamentally changes how companies structure their income statement and disclose information, moving away from FRS 1.

2. New Rules for the Income Statement: A key focus is the new, more structured and standardized approach to classifying income and expenses, including new mandatory subtotals and specific requirements for analyzing operating expenses.

3. Strict Regulation of "Alternative Performance Measures": The standard introduces formal requirements for Management-defined Performance Measures (MPMs). Companies will learn where these metrics can be presented and the extensive, comparative disclosures required to prevent misleading information.

4. Enhanced Principles for Clarity: The seminar will cover the strengthened guidance on aggregating and disaggregating information, as well as new rules for labels and descriptions to make financial statements more useful and comparable.

5. Practical Implementation Guidance: Through illustrative examples for different industries (e.g., manufacturing, financing), attendees will see how to apply the standard in practice, making the transition from theory to execution clearer.

Who Should Attend

This seminar is critically important for professionals involved in the preparation, analysis, auditing, or governance of financial statements. Specifically, it is designed for:

· Chief Financial Officers (CFOs) & Finance Directors: To understand the strategic impact on reported performance metrics and investor communications.

· Financial Controllers & Chief Accountants: To lead the implementation process, redesign financial statements, and update accounting policies.

· Financial Reporting & Technical Accounting Managers: To delve into the detailed requirements and ensure technical compliance.

· Internal Auditors: To assess the implementation process and the new internal controls required for the changed reporting.

· External Auditors: To understand the new auditing implications and prepare to challenge management's application of the new rules, especially around MPMs.

· Accounting & Finance Professionals in corporations and public accounting firms who need to stay current with the latest standards.

· Members of Audit Committees & Board of Directors: To provide oversight and understand the significant changes in the financial reports they will approve.