Presentation and disclosure in financial statements: statement of financial position

Abstract

Importance: innovations in the formation of the report on financial position of corporate statements in accordance with the International Financial Reporting Standard IFRS 18 «Presentation and Disclosure in Financial Statements» (IFRS 18), recommended for application for periods from January 21, 2027, by the order of the Ministry of Finance of the Russian Federation dated January 14, 2026 No. 3n. Purpose: to study the process of innovations in the international unification and adaptation of International Financial Reporting Standards in Russia, directions for improving the quality and reliability of information disclosed in the statement of financial position. Research design: IFRS 18 establishes a statement of financial position as part of the main financial statements, disclosing a structured summary of information that allows stakeholders to make informed economic decisions about recognized assets, liabilities, and equity of the corporation. The formation of the statement of financial position is influenced by the types of activities of the corporation, the duration of operating cycles, the liquidity of assets and liabilities. IFRS 18 notes that presenting a useful structured summary requires compliance with specific requirements governing the report structure regarding the typology of assets, liabilities, and recognition conditions. Results: IFRS 18 defines the structured information in the primary financial statement of financial position, as well as additional information that enables stakeholders to make informed economic decisions. IFRS 18 places particular emphasis on the composition and content of the statement of financial position indicators and compliance with specific requirements governing the report structure regarding the disclosure of assets (non-current and current), liabilities (long-term and current), and recognition conditions. While not prescribing the format of the statement of financial position, IFRS 18 requires the exercise of judgment in providing additional disclosures in the statement of financial position and notes.