IFRS 18 countdown: what finance teams should be doing now
IFRS 18 applies to annual reporting periods beginning on or after 1 January 2027. A summary from Workiva sets out what chief financial officers and reporting teams need to be preparing for.
The standard sorts income and expenses into five categories: operating, investing, financing, income taxes and discontinued operations. The first three are new. It also introduces two mandatory subtotals: operating profit or loss, and profit or loss before financing and income taxes. Management-defined performance measures used in investor communications will need a dedicated note, reviewed by auditors and reconciled to IFRS totals.
Comparatives must be restated, so 2026 figures will need reworking as well. Groups with many subsidiaries face the heaviest lift, since every affected entity’s statements must change.
Workiva’s checklist ends with a reminder to leave time for reviewing XBRL tags, and teams would do well to start early. New categories, subtotals and performance measure disclosures all change what gets tagged and how. That makes IFRS 18 a taxonomy exercise as much as an accounting one, as our guest blog on implementing it in XBRL explains.
Read more here.
