Reference is made to the issuance of International Financial Reporting Standard No. 18 (IFRS 18) - Presentation and Disclosure in Financial Statements, which will replace International Accounting Standard No. 1 (IAS 1) - Presentation of Financial Statements, for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted.

IFRS 18 was issued in response to investors' increasing demand for more useful, transparent, and comparable information about entities' financial performance. The standard introduces significant enhancements to the presentation and disclosure of financial information, thereby improving the quality of financial reporting, facilitating financial analysis and comparability among entities, strengthening transparency, and supporting investor protection.

Given the significance of this standard and the substantial changes it introduces to the presentation of financial statements and related disclosures, entities are expected to commence their preparations at an early stage to ensure full compliance with its requirements. Such preparations should include providing the necessary resources, systems, and technical capabilities to support effective implementation and to enhance the quality, reliability, and transparency of financial information presented to stakeholders.

Accordingly, the Capital Markets Authority draws the attention of all entities required to submit financial statements and financial data to the Authority, including listed companies, licensed persons, and collective investment schemes, to the importance of undertaking the following actions:

1.     Perform a comprehensive gap analysis to assess the impact of IFRS 18 on the entity's financial statements, reporting processes, accounting policies, and related disclosures.
2.     Develop and implement an action plan to ensure readiness for compliance with the requirements of IFRS 18 prior to its mandatory effective date, with particular emphasis on updating internal financial reporting systems, management reporting frameworks, and the chart of accounts, where necessary.
3.     Strengthen institutional readiness and technical capabilities by providing appropriate training programs, workshops, and awareness initiatives for finance, accounting, internal audit, compliance, and other relevant personnel involved in the financial reporting process.
4.     Assess the implications of retrospective application, as IFRS 18 requires comparative information to be restated in accordance with the standard's transition requirements. Entities should therefore begin preparing the necessary historical information and supporting documentation sufficiently in advance of the effective date.

The Capital Markets Authority expects all concerned entities to take the necessary measures to ensure a smooth and timely transition to IFRS 18 and to maintain the highest standards of financial reporting quality, transparency, and investor confidence.

Please take the necessary action accordingly.