🧩 What is "aggregated information"?
A company may combine many different items under a single heading in its balance sheet or income statement. Such a combined line item is called "aggregated information".
Example:
The income statement might include a line such as:
- "Other operating expenses": TRY 120 million
But it is not clear what this TRY 120 million contains!
🔎 What does IFRS 18 say?
If a combined line item obscures material information, its content must be disaggregated and disclosed in the notes. Vague labels such as "other" should be used only when a more informative label cannot be found.
📌 What kind of disaggregation?
For the "other operating expenses" example above, IFRS 18 says:
Disclose it in the notes as follows:
| Description | Amount (TRY million) |
|---|---|
| Advertising expenses | 40 |
| Training and consultancy expenses | 25 |
| Litigation and penalty expenses | 30 |
| Donations and sponsorships | 15 |
| Other | 10 |
| Total | 120 |
🎯 Why was this rule introduced?
Previous position (IAS 1):
Companies could hide many items under the heading "other expenses".
Users (investors, analysts) could not see what these were.
New position (IFRS 18):
If material amounts are included under "other", companies must now explain what they are.
This increases transparency and comparability.
🏁 Conclusion:
"Disaggregated details corresponding to aggregated information" means:
Where a line item combines material amounts of a different nature, they should be shown separately in the notes.
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