IAS 8 Paragraph 30: What Your Business Needs to Disclose About Upcoming Accounting Changes

IAS 8 Paragraph 30: What Your Business Needs to Disclose About Upcoming Accounting Changes

When a new accounting standard has been issued but has not yet come into effect, IAS 8 does not let you stay silent about it. Paragraph 30 of IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors — places a clear disclosure obligation on entities that have not yet adopted a new or revised standard expected to have a material impact on their financial statements.

With IFRS 18 — the replacement for IAS 1 — becoming effective for periods beginning on or after 1 January 2027, this requirement is no longer theoretical. For businesses preparing financial statements under IFRS for periods ending in 2025 and 2026, paragraph 30 is a live obligation right now.

What Does IAS 8 Paragraph 30 Actually Require?

Where an entity has not yet applied a new IFRS standard that has been issued but is not yet effective, it must disclose:

• The title of the new standard

• The nature of the impending change or changes in accounting policy

• The date by which application is required (the mandatory effective date)

• The date as at which it plans to apply the standard initially

• Either a discussion of the known or reasonably estimable impact on its financial statements; or, if the impact is not yet known or reasonably estimable, a statement to that effect

These disclosures are required in each financial reporting period until the entity adopts the standard. If IFRS 18 is relevant to your business and you have not yet adopted it, you need to include paragraph 30 disclosures in your current financial statements.

Why Does This Matter for IFRS 18?

IFRS 18 — formally titled Presentation and Disclosure in Financial Statements — replaces IAS 1 and introduces significant changes to the structure of the income statement, the definition and presentation of management performance measures (MPMs), and the general principles of disclosure. It is effective for annual periods beginning on or after 1 January 2027, with early adoption permitted.

This is not a minor housekeeping update. IFRS 18 changes how businesses categorise and present their financial performance, with downstream implications for:

• KPIs and non-GAAP measures published alongside financial statements

• Stakeholder and investor communications

• Internal management reporting frameworks

• Board and audit committee reporting

The IAS 8 paragraph 30 disclosure is an early signal to investors and stakeholders that the business has assessed the standard, understands its implications, and is preparing accordingly.

What Should the Disclosure Say?

The quality of paragraph 30 disclosures varies widely in practice. At minimum, a disclosure must name the standard, give the effective date, and either quantify the impact or confirm it is not yet reasonably estimable. But a high-quality disclosure goes further.

A robust IFRS 18 paragraph 30 disclosure will typically:

• Describe the key changes introduced by IFRS 18 that are relevant to the entity's specific financial statements — not just a generic summary of the standard

• Confirm whether the entity intends to adopt early or at the mandatory effective date

• Set out the key areas of the financial statements expected to be affected, including any MPMs that will need to be disclosed under the new requirements

• Provide an honest assessment of where impact analysis is still in progress

Boards and audit committees should challenge preparers to ensure these disclosures are specific and accurate — not templated generic language that adds no real information for the reader.

The Broader Context: A Pattern of Standards in Transition

IFRS 18 is the most prominent, but it is not the only standard requiring paragraph 30 attention. Finance teams should carry out a systematic review each reporting period to identify all in-scope standards that have been issued but are not yet effective.

This is exactly the kind of technical review that is easy to overlook when finance teams are under pressure during year-end close. But inadequate disclosure of impending accounting changes has been an area of focus for both auditors and regulators. Getting it right matters.

How Finsight Advisory Can Help

Finsight Advisory supports finance teams in navigating the technical demands of IFRS reporting, including the assessment and disclosure of impending standard changes. Whether you need support with your paragraph 30 disclosures, an IFRS 18 readiness review, or guidance on how the new standard will affect your specific financial statements, our team can help you get ahead of the change.

Speak to Finsight Advisory — finsightadvisory.co.uk