IFRS 18: Understanding the Changes and Impact on SAP S/4HANA Users

IFRS 18 is a new accounting standard that replaces IAS 1, requiring companies to standardize their financial statements, improve transparency, and enhance comparability. The standard introduces three new categories for the income statement, requires subtotals, and clarifies expense reporting by function or nature. It also sets stricter rules for management-defined performance measures. SAP S/4HANA users must adjust their financial reporting model, accounts, and assignments to comply with the new standard.