Transitioning to Ind AS 118 - How different will your Income Statement look from FY2027?

The Exposure Draft of Ind AS 118, Presentation and Disclosure in Financial Statements, proposed to take effect for annual periods on or after 1 April 2027, is expected to enhance disclosures, improve presentation and make stakeholders better informed in their decision-making.

The first part of our publication series, Transitioning to Ind AS 118 - How different will your Income Statement look from FY2027?, gave a high-level overview of the proposed changes, including a worked example to understand key changes. The second part covered key proposals relevant for classifying transactions under the investing category, while the third part outlined classifications in the financing and operating categories. 

Part 4 explores the key principles, areas requiring judgment, disclosure requirements and practical considerations pertaining to the proposed Management-Defined Performance Measures (MPMs) introduced under Ind AS 118.

The next part of this series will further explore the key aspects of Proposed Ind AS 118, offering deeper insights and illustrative examples. Stay tuned!

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