Which Income Statement reports can I apply the IFRS18 Standard Income Statement Layout to?

The IFRS18 Standard Income Statement Layout is available for use with supported Income Statement reports in NetSuite. To edit the layout you must start from an Income Statement report that already has the IFRS18 Standard Income Statement Layout assigned.

Who decides which accounts belong in each IFRS 18 section and what account types are allowed?

Your organization decides how accounts are classified into the five IFRS 18 sections; NetSuite provides the layout and filtering capability but does not make classification decisions. Only income and expense accounts should be used when defining the section filters for the IFRS 18 income statement layout.

Can I show Gross Profit in the Operating section and how do I add it?

Yes. First configure separate rows for revenue and cost of sales, then in the Financial Report Builder add a formula row in the Operating section (select Add Formula Row or edit an existing formula row) and define the formula expression, label, hierarchy, and format options. For percent-of columns on custom income statement formula rows, set the Marker field to Expense or Income as appropriate.

NetSuite IFRS 18 Income Statement...

Q: How do I configure the IFRS18 Standard Income Statement Layout on a report?

Open an Income Statement report with the IFRS18 Standard Income Statement Layout assigned and click Customize. On the Edit Layout page select IFRS18 Standard Income Statement Layout, click Edit Layout, add filters (for example Account Name, account number, class, department, location, or subsidiary) to each section to determine which accounts appear, make any other adjustments, and then Save.

NetSuite’s IFRS18 Standard Income Statement Layout organizes supported Income Statement reports into operating, investing, financing, income taxes, and discontinued operations. IFRS 18 replaces IAS 1 presentation requirements for annual reporting periods beginning on or after January 1, 2027. Your organization—not NetSuite—classifies accounts and configures the section filters.

What does the IFRS 18 layout do in NetSuite?

IFRS 18 is an International Financial Reporting Standard for presenting and disclosing information in financial statements. In NetSuite, the IFRS 18 income statement layout helps organize income statement information into IFRS 18 presentation categories for supported Income Statement reports.

The standard layout is named IFRS18 Standard Income Statement Layout. It contains five sections and subtotal rows that summarize income and expenses in the IFRS 18 presentation structure:

Operating
Investing
Financing
Income taxes
Discontinued operations

The layout does not determine where an account belongs. Account classification depends on the organization’s activities, accounting policy, and reporting requirements. The organization must determine the classification and configure the layout to reflect it.

Which sections are included and what accounts might appear in them?

The IFRS18 Standard Income Statement Layout starts with empty sections. The following examples illustrate accounts that might be included after the organization configures section filters. They are not a prescribed account-mapping rule.

IFRS 18 section	Example accounts
Operating	Product revenue, service revenue, cost of goods sold, salaries expense, rent expense, advertising expense
Investing	Dividend income, interest income from investments, gain on investment securities
Financing	Interest expense on borrowings, lease interest expense, amortization of debt issuance costs
Income taxes	Current income tax expense, deferred tax expense or income
Discontinued operations	Loss from discontinued operations, gain on disposal of discontinued operations

Only income and expense accounts should be used in the IFRS 18 income statement layout. That constraint matters when defining the filters for each section: the layout structure is provided, but the account population is configured by the organization.

How do you configure the IFRS18 Standard Income Statement Layout?

Start with an Income Statement report that has the IFRS18 Standard Income Statement Layout assigned. Then use the report customization and layout-editing flow to select the layout and define the accounts shown in each section.

Go to an Income Statement report with the IFRS18 Standard Income Statement Layout assigned.
Click Customize.
On the Edit Layout page, select IFRS18 Standard Income Statement Layout in the Layout list.
Click Edit Layout.
Add filters to each section, such as Account Name, to determine which accounts appear there.
Make other needed report adjustments.
Click Save.

Because the sections are initially empty, the filters are the mechanism that determines their contents. The source material identifies Account Name as one example. Financial statement section criteria can also be based on account name, account number, class, department, location, and subsidiary when defining custom financial statement sections.

How do financial sections present the filtered accounts?

A financial section is a subset of financial data in a financial statement. Each section includes three core row types:

Row type	Purpose
Header row	Displays the section description
Account rows	Display data amounts for the accounts included in the section
Total row	Displays the section total amount

A section can be collapsed or expanded when it is configured with the relevant plus or minus sign behavior. When a section is collapsed, only its header text and the amount from its total row display. If a section is not preceded by a plus or minus sign, it cannot be collapsed or expanded.

For standard financial statements, financial sections correspond to account types and section data is grouped and sorted by account number. The criteria for those standard sections are dynamic: when the statement runs, each section includes data for all accounts of the selected type. Dynamic criteria can include newly created accounts, rather than relying on a static list of accounts.

For custom financial statements, section criteria can be based on factors other than account type. This is relevant to IFRS 18 configuration because the organization is responsible for deciding which accounts belong in each presentation category and for applying the filters that place them there.

Can you add Gross Profit to the Operating section?

Yes. The IFRS 18 layout can include a formula row that displays Gross Profit in the Operating section. Before adding that formula row, configure separate rows for revenue and cost of sales.

A formula row displays a value calculated from values in other financial statement rows. In the Financial Report Builder, the expression used for the formula row can be defined and edited, along with other formula-row characteristics in custom financial statements.

To add or edit a formula row in the Financial Report Builder:

Start the Financial Report Builder and ensure an editable custom layout is selected on the Edit Layout page.
In the layout outline, select the row below the location for the new formula row and choose Add Formula Row from the Add Row/Section list, or select an existing formula row.
Define or edit the formula row as needed, including its header label, hierarchy, format options, and expression.

The Formula Label is the text shown for a formula row. Clearing Display Row hides that row. For a custom income statement formula row used to calculate percent-of-expense or percent-of-income column values, set the Marker field to Expense or Income, respectively.

What should organizations establish before using this layout?

The key prerequisite is an organization-defined account-classification approach. NetSuite provides the layout sections, subtotal structure, and filtering capability, but it does not make the classification decision for an account.

Before configuring the layout, identify the income and expense accounts that the organization intends to include and determine the applicable IFRS 18 section for each one. The illustrative accounts in the layout documentation can help frame the sections, but classification remains dependent on the organization’s activities, accounting policy, and reporting requirements.

The layout is available for use with supported Income Statement reports. The setup process also requires an Income Statement report with the IFRS18 Standard Income Statement Layout assigned before the layout can be selected and edited through report customization.

Who This Affects

Organizations preparing income statement information under IFRS 18 presentation categories: They determine how income and expense accounts are classified across the five layout sections.
People configuring supported Income Statement reports: They select the IFRS18 Standard Income Statement Layout, edit the layout, and add section filters.
People maintaining financial statement layouts: They can adjust section filters and, where needed, add formula rows such as Gross Profit after configuring separate revenue and cost-of-sales rows.

Key Takeaways

IFRS 18 replaces IAS 1 requirements for presenting financial statements and applies to annual reporting periods beginning on or after January 1, 2027.
NetSuite’s IFRS18 Standard Income Statement Layout provides Operating, Investing, Financing, Income taxes, and Discontinued operations sections, plus subtotal rows.
The sections begin empty. The organization configures filters to determine which accounts appear in each section.
Use only income and expense accounts in the IFRS 18 income statement layout.
NetSuite does not determine the appropriate account classification; the organization determines it based on its activities, accounting policy, and reporting requirements.
A Gross Profit formula row can be added in the Operating section after separate revenue and cost-of-sales rows are configured.

NetSuite IFRS 18 Income Statement Report Layout