Assess Your IFRS 18 Readiness and Implementation Priorities with BDO’s IFRS 18 Readiness Scan
Assess Your IFRS 18 Readiness and Implementation Priorities with BDO’s IFRS 18 Readiness Scan
IFRS 18 Presentation and Disclosure in Financial Statements introduces significant changes to the way financial performance is presented and communicated. Implementing this new standard can be time-consuming and may require substantial effort, including changes to reporting processes, systems, and comparative information. In addition, IFRS 18 may affect key performance indicators (KPIs) and influence how investors, lenders, and other stakeholders assess and interpret financial performance. To help organizations understand the potential impact of IFRS 18 and focus their implementation efforts where they matter most, BDO has developed the IFRS 18 Readiness Scan.
As a result, organizations should review their reporting data and processes during 2026 and make any necessary adjustments to meet the new requirements. Entities that publish interim financial reports will also need to apply the new presentation and disclosure requirements in their 2027 interim reporting.
Preparing for IFRS 18 often requires a review of the chart of accounts, reporting structures, processes, internal controls, systems, and data collection practices. The new requirements may also affect KPIs, financing covenants, management remuneration arrangements, and communication with investors and other stakeholders.
Conducting an early impact assessment helps organizations identify potential challenges, prioritize implementation activities, and ensure a smooth transition to the new standard.
External reporting and stakeholder communication also deserve attention. Organizations should assess which performance measures fall within the scope of the new MPM disclosure requirements and determine whether changes to their communication strategy may be needed.
Within 10 minutes, you will receive:
What are the key changes under IFRS 18?
The new standard focuses on three key areas:- The presentation of the statement of profit or loss, including new categories and mandatory subtotals;
- The aggregation and disaggregation of financial information;
- New disclosure requirements for management-defined performance measures (Management-defined Performance Measures, or MPMs).
Why start preparing now?
All entities applying IFRS Accounting Standards are required to adopt IFRS 18 for annual reporting periods beginning on or after 1 January 2027. For entities with a 31 December year-end, this means that IFRS 18 must be applied in the 2027 financial statements. Comparative information will also need to be restated.As a result, organizations should review their reporting data and processes during 2026 and make any necessary adjustments to meet the new requirements. Entities that publish interim financial reports will also need to apply the new presentation and disclosure requirements in their 2027 interim reporting.
Preparing for IFRS 18 often requires a review of the chart of accounts, reporting structures, processes, internal controls, systems, and data collection practices. The new requirements may also affect KPIs, financing covenants, management remuneration arrangements, and communication with investors and other stakeholders.
Conducting an early impact assessment helps organizations identify potential challenges, prioritize implementation activities, and ensure a smooth transition to the new standard.
External reporting and stakeholder communication also deserve attention. Organizations should assess which performance measures fall within the scope of the new MPM disclosure requirements and determine whether changes to their communication strategy may be needed.
Take the Scan
The BDO IFRS 18 Readiness Scan provides an initial assessment of your organization's preparedness for IFRS 18 and highlights key areas that may require further analysis.Within 10 minutes, you will receive:
- A visual overview of your organization's readiness across up to ten key IFRS 18 topics;
- An initial identification of potential gaps and risks;
- Practical guidance to help prioritize next steps and determine whether further analysis or support may be beneficial.
