Embracing IFRS 18 – Presentation and Disclosure in Financial Statements
New IFRS 18 Standards
The IASB issued IFRS 18 in April 2024 to improve the financial statements presentation in various areas. The introduction of IFRS 18 is the most significant change to reporting standards in over 20 years. It replaces IAS1 and must be adopted by January 1, 2027, with comparatives required from the prior period (FY 2026).
In the following video we cover the following initial high-level questions on IFRS 18:
- What is IFRS 18 all about?
- When should you get started?
- What are the implications?
IFRS 18 marks a major shift in several areas – most notably how the income statement is presented, how management-defined performance measures are disclosed, and some additional requirements for grouping line items. The requirements for each of these key changes can be found in this IFRS summary.
How we can help
We will be happy to assist you in the initial assessment and implementation of the IFRS 18 requirements with an end-to-end approach, which includes:
- Planning:
- Tailored workshop to identify the impact of the new IFRS 18 presentation requirements specific to your Company and to define an implementation roadmap.
- Assessment and implementation:
- Assist with assessing and implementing the changes in the income statement presentation according to the new IFRS 18 presentation requirements.
- Assist with assessing and implementing the appropriate level and consistent approach of aggregation and disaggregation of information presented in the primary financial statements and notes to comply with the new IFRS 18 presentation requirements.
- Assist with defining the management performance measures in line with industry expectations, assessing the impact on the performance management processes as well as on the performance measurements directly linked to operating profit and loss totals. Further, assessing the impact of changes to the notes and the related audit trail requirements.
- Assist with assessing and implementing the required changes to the systems, chart of accounts, processes and controls.
- Assist with the required technical accounting documentation, key judgements, trainings and audit readiness.
- Go-live and operate:
- Assist with the transition period, dry-runs, go-live and first financial statements prepared under IFRS 18.
