When a new accounting standard approaches, it is tempting to focus on the checklist: update the chart of accounts, revise reporting templates, configure systems and train the team. Those steps matter, but they are only the starting point.
What IFRS 18 changes
IFRS 18 introduces new defined subtotals in the statement of profit or loss, including operating profit and profit before financing and income taxes. It also brings disclosure requirements for management-defined performance measures and strengthens guidance on how information is grouped and presented. It applies to annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. (IASB overview of IFRS 18)
The questions for finance leaders
The wider question for finance leaders is how these changes affect the way the business understands performance. Do management reports use measures that will need clearer explanation? Can the systems produce reliable comparative information? Do leaders understand how operating performance connects to cash, working capital and investment decisions?
Start early
Treating IFRS 18 purely as a year-end reporting task risks a rushed implementation. Starting early gives finance teams time to assess the impact, involve business stakeholders and improve the quality of reporting.
Key takeawayThe goal is not just a compliant set of statements. It is clearer information that supports better decisions.
Adapted from Celestine’s LinkedIn post on IFRS 18.
Read the original post on LinkedIn →
Get new articles by email
Short, practical insights on finance, governance and risk.