PSAK 118: Presentation and Disclosure in Financial Statements was issued on 28 May 2025, which will replace PSAK 201: Presentation of Financial Statements. The new standard is intended to address investors’ concern about inconsistency, transparency, and comparability in how companies present their financial performance, particularly income statement.
Entities are expected to present the income statement in a more structured and standardized way (including new categories and defined subtotals), to include the disclosure of management-defined performance measures (MPMs) as part of the general purpose financial statements, and to reassess the aggregation and disaggregation of information.
PSAK 118 is effective for annual reporting period on or after 1 January 2027, with early adoption permitted.
