Rule ID: DQC.IFRS.0232.10925
Public Exposure May 6 - June 20, 2026 - provide comment at https://xbrl.us/public-review
Effective date: TBD

Purpose:

The purpose of Rule DQC.IFRS.0232.10925 is to ensure that IFRS 18 filers do not use certain combined total concepts as distinct line items in the statement of operating activities or income statement. Under IFRS 18, the concepts Depreciation, Amortisation, and ImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss represent aggregated totals that span operating, investing, and financing activities. Including them as individual items in the primary financial statements undermines the activity-based disaggregation required by IFRS 18.

Conditions:

The rule applies only to IFRS 18 filings — specifically, filings whose DTS includes the entry point https://xbrl.ifrs.org/taxonomy/2025-03-27/ifrs_18_entry_point_2025-03-27.xsd.

For qualifying filings, the rule identifies all presentation networks whose role description contains - Statement -, excluding:

• Parenthetical statements
• Equity, deficit, stockholders' equity, capital, investment, and changes in equity networks
• Redeemable, convertible, preferred, temporary equity, and members' interest networks
• Net proceeds from all sources and highlights networks

For each qualifying statement network, the rule checks whether any of the following concepts appear as a concept in the network:

• Depreciation
• Amortisation
• ImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss

If any of these concepts are present, the rule triggers an error.

IFRS 18 introduced a requirement to present the income statement (statement of profit or loss) with line items classified by their activity — operating, investing, or financing. The concepts Depreciation, Amortisation, and ImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss are aggregate concepts that span multiple activity categories and are not appropriate as standalone items on the face of the income statement or statement of operating activities under IFRS 18. Filers should instead use more specific concepts that are scoped to a particular activity (e.g., DepreciationOfPropertyPlantAndEquipment for operating depreciation or DepreciationRightOfUseAssets for right-of-use asset depreciation within a specific activity). Presenting the combined totals obscures the activity classification required by the standard.

The concept Depreciation is used in the statement of operating activities or income statement, but is not allowed when using IFRS 18. These items represent the combined totals of operating, investing, or financing activities and should not be included as distinct items. Items specific to the operating, investing or financing activity should be used instead.

Rule Element Id: 10925
Rule version: 28.0.0RC1

The rule element ID is used to identify unique elements or combinations of elements tested in the rule.

The rule first checks whether the filing's DTS includes the IFRS 18 entry point (ifrs_18_entry_point_2025-03-27.xsd). If not, the rule skips entirely (skip).

For IFRS 18 filings, the rule enumerates all parent-child (presentation) networks in the taxonomy. It filters to only those networks whose role description contains - Statement - while excluding parenthetical, equity-related, and other non-income-statement roles (identified by keywords in the role URI).

For each qualifying network, the rule collects the full set of concepts in that network and checks for the presence of Depreciation, Amortisation, or ImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss using an in list(...) filter. Each matching concept triggers an error.

The rule exists in the 2025 IFRS taxonomy version.

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