IFRS 18 - Presentation and Disclosure in Financial Statements

New regulations for financial reporting affecting all IFRS preparers

What is it about?

IFRS 18 replaces IAS 1 ‘Presentation of Financial Statements’ to increase transparency and improve comparability of information regarding the financial performance of companies. 
Key changes compared to IAS 1:
  • Two new subtotals in the statement of profit or loss
  • Additional categories for the classification of income and expenses under consideration of specified main business activities 
  • Principles for the aggregation and disaggregation of financial statement information
  • Disclosure requirements for management-defined performance measures
  • Initial application date:
    • Annual reporting periods beginning on or after January 1, 2027 
    • Retrospective adjustment through restatement of the comparative period (usually 2026)
 

What are the challenges?

  • Individual analysis of the need for adjustments due to the new requirements
  • Identification and explanation of management-defined performance measures
  • Updating of account plans/mappings and other guidelines
  • Ensuring data availability for changed structures and disclosures
  • Adjustment of existing IT systems/tools for (external) reporting
  • Assessment of the impact on controlling, compensation agreements, and financing agreements with covenants
  • Simultaneous compliance with IAS 1 reporting and preparation of the comparative period according to IFRS 18 in the period before initial application (usually 2026)
 

How can we support you?

  • Conducting impact analyses
  • Consulting on technical (scoping) questions
  • Supporting process and system adjustments
  • Preparing and/or adapting guidelines and process descriptions
  • Providing needs-based training and workshops
  • (Partial) project management and implementation strategy
 

How do you benefit from our services?

  • Audit-proof and timely implementation of the new requirements
  • Personnel relief through the involvement of our technical, process, and IT experts
  • Individual consulting (coaching approach vs. full service approach)