IFRS 18 - Presentation and Disclosure in Financial Statements
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)