Lesson · IFRS 18
The two mandatory subtotals: operating profit and profit before financing and income taxes
State the two subtotals every entity must present and where each sits in the statement.
20 minutes Standard as at 18 October 2026
What you will be able to do
- State the two subtotals every entity must present and where each sits in the statement
- Build a statement of profit or loss from categorised income and expenses and show both subtotals bridging
- Explain why profit before financing and income taxes is not simply operating profit under another name
- Identify when an entity may present additional subtotals and the conditions that apply
This is a preview of a member lesson. The full lesson is in the IFRS 18 library, open to everyone who enrols.
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IFRS and SAM, one requirement at a time
Each week you get the Institute's new articles: one requirement of IFRS 17, IFRS 9, IFRS 15, IFRS 18 or SAM, worked on a South African case. You start with the free IFRS 18 readiness checklist, ten areas to work through before IFRS 18 takes effect, each with its paragraph reference.