Lesson · IFRS 18
Management-defined performance measures: what qualifies and what does not
State the conditions a subtotal must meet to be a management-defined performance measure.
13 minutes Standard as at 18 October 2026
What you will be able to do
- State the conditions a subtotal must meet to be a management-defined performance measure
- Test a set of candidate measures against the definition and say which qualify
- Apply the presumption that a publicly communicated measure conveys management's view, and say how it is rebutted
- Identify the subtotals specifically excluded, including those similar to gross profit
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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.