What Businesses Need to Know in 2025
Financial reporting standards are continually evolving to meet the demands of transparency, accountability, and comparability in today’s complex economic environment. Among these, International Financial Reporting Standards (IFRS) play a pivotal role for organisations globally, especially multinational corporations and publicly accountable entities. Staying current with the latest financial reporting standards updates, including IFRS disclosures, is crucial for compliance, sound financial communication, and investor confidence.
This article dives into the key updates on financial reporting standards as of 2025, focusing on IFRS disclosures, their practical impact on businesses, and the implications for financial statement preparation. Additionally, it outlines strategic considerations for companies at various buying funnel stages—from those just exploring compliance solutions to those ready to engage with professional reporting experts.
Understanding the Latest IFRS Updates for 2025
As of 30 June 2025, significant amendments and new standards have been issued by the International Accounting Standards Board (IASB), affecting IFRS disclosures and presentation requirements. For example, IFRS 18 Presentation and Disclosure in Financial Statements and IFRS 19 Subsidiaries without Public Accountability: Disclosures were introduced in May 2024 and became effective for periods starting on or after 1 January 2027, giving companies time to prepare for compliance.
These standards emphasise enhanced presentation formats and expanded disclosures to provide greater clarity and comparability. The IFRS Accounting Taxonomy 2025, published in March 2025, also supports digital tagging for efficient data reporting and validation checks, easing IFRS compliance burdens via technology-enabled workflows.
Major IFRS Updates Effective for Reporting Periods from 2025 Onward
| Standard | Effective Date | Key Disclosure/Presentation Changes | Business Impact |
|---|---|---|---|
| IFRS 18 | 1 Jan 2027 | New presentation and disclosure requirements in financial statements | Requires reformatting reports |
| IFRS 19 | 1 Jan 2027 | Disclosures specific to subsidiaries without public accountability | Simplified disclosures option |
| IFRS Taxonomy 2025 | 1 Jan 2025 | Enhanced tagging for IFRS data in digital financial reports | Supports automation |
IFRS updates are frequently accompanied by detailed guidance to ensure companies disclose information that is relevant, accurate, and decision-useful for investors and other stakeholders. According to recent research, companies that timely adopt updated IFRS standards experience a 15-20% improvement in investor trust measured through survey data on transparency perception.
Importance of IFRS Disclosures in Financial Reporting
IFRS disclosures are the detailed notes and explanations that accompany main financial statements. These disclosures help users understand the assumptions, accounting policies, risk exposures, and estimates underpinning reported figures. With increased scrutiny by regulatory bodies and heightened investor demands, transparent IFRS disclosures reduce information asymmetry and enhance market efficiency.
For example, IFRS mandates disclosures for Earnings Per Share (EPS) under IAS 33 and interim financial statements under IAS 34, which require both basic and diluted EPS presentation, even if companies have discontinued operations. These disclosure requirements ensure stakeholders have comprehensive insight into company performance nuances.
Navigating Compliance: How Businesses Can Prepare
Business owners and financial teams often ask: How do we ensure compliance with these evolving IFRS standards? Successful navigation requires a strategic approach combining education, process adjustment, and technology adoption.
- Understand the Specific Updates Relevant to Your Entity: Different industries and company sizes may face unique disclosure requirements. Stay updated with the IASB publications and national standard setters.
- Leverage IFRS Taxonomy: Utilising the IFRS Accounting Taxonomy 2025 for digital tagging can simplify the reporting process by automating the consistency and validation of disclosures.
- Train Your Finance Team: Ensure accounting staff are proficient with the new presentation requirements, including EPS disclosures and subsidiary reporting.
- Invest in Reporting Software: Technology tools that integrate IFRS tagging and disclosure checklists reduce manual errors and improve reporting efficiency.
Recommended Preparation Steps for IFRS Compliance in 2025
| Step | Description | Benefit |
|---|---|---|
| Regular IFRS Updates Review | Monitor IASB and local compliance bulletins | Timely adaptation to changes |
| Digital Reporting Integration | Implement IFRS Taxonomy tagging for disclosures | Automates validation and filing |
| Staff Training Workshops | Conduct focused training on new standards and disclosures | Improves accuracy and readiness |
| Consultation with Experts | Engage auditors or consultants for complex updates | Ensures best practices compliance |
Partner with Experts for Smooth IFRS Compliance
As financial reporting standards continue to evolve, staying ahead with updated IFRS disclosures is critical for accurate, transparent, and compliant financial statements. Partnering with a trusted expert like DTL Accounting Group ensures your business leverages the latest IFRS updates effectively, backed by technology and professional expertise.
Whether you’re at the beginning of your compliance journey or ready to enhance your financial reporting process, explore how we can help streamline your IFRS reporting workflows, reduce compliance risks, and enhance disclosure clarity.
To take the next step towards seamless accounting services in Singapore, financial reporting, and expert IFRS compliance support, reach out to our experienced team here and secure your financial reporting future today!
