BC2 The IASB developed IFRS 18 in response to strong demand from stakeholders, particularly from users of financial statements, for improvements to financial performance reporting.
BC3 Research and meetings with stakeholders revealed a need for improved requirements relating to:
(a) subtotals in the statement of profit or loss - IAS 1 required an entity to present profit or loss, but no specific subtotals, leading to diversity in the presentation and calculation of subtotals even among entities in the same industry. Entities that applied IAS 1 often presented subtotals using the same label, but which included varying income and expenses. Such diversity made it difficult for users of financial statements to understand and compare information. Comparability is important to users, particularly to buy-side investors, who typically analyse many entities in varied industries.
(b) aggregation and disaggregation - the requirements in IAS 1 for the aggregation and disaggregation of information
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