About this video

• Video Title: IFRS-18 Impact on AAA paper by Kashif Kamran - AAA expert tutor
• Channel: Kashif Kamran
• Speakers: Kashif Kamran
• Duration: 01:21:48

Overview

This video explains the key changes introduced by IFRS 18, focusing on its impact on the AAA (Advanced Audit and Assurance) exam. It covers new categories and subtotals in the statement of profit or loss, disclosure requirements for management-defined performance measures (MPMs), and enhanced guidance on grouping information. The speaker also demonstrates how these changes affect exam answers, particularly in areas like materiality determination, risk assessment, and the use of specific terminology.

Key takeaways

• IFRS 18 Changes: The standard introduces new categories (operating, investing, financing, income taxes, discontinued operations), new subtotals (operating profit, profit before financing and income taxes), and enhanced disclosure requirements for MPMs and grouping of information.
• Impact on AAA Exam: The changes in IFRS 18 will affect terminology used in exam answers, such as "profit before income taxes" instead of "profit before tax." This impacts materiality calculations and the discussion of overstated or understated profits.
• Presentation and Disclosure: IFRS 18 emphasizes clearer presentation and disagregation of expenses where possible. MPMs must be disclosed in the notes with a reconciliation to IFRS figures.
• Specific Examples: The video uses mock exam scenarios to illustrate how to apply IFRS 18 concepts to joint ventures, government grants, and impairment testing, highlighting the importance of correct terminology and presentation.
• Resources: The speaker recommends reading ACCA's SPR technical articles on IFRS 18 for further understanding and provides examples of how to incorporate these changes into AAA exam answers.