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 changes to how financial performance is presented and communicated. Implementation may be time-consuming and require considerable efforts, including potential updates to reporting processes, systems and comparative information. It may also have an impact on key metrics and how stakeholders interpret your results.
To help organisations understand the potential impact and prioritise their implementation efforts, BDO has developed an IFRS 18 Readiness Scan.
Organisations may need to adapt their chart of accounts, reporting structures, processes, controls, systems and data collection. The new requirements could also affect key performance indicators, financing covenants, management incentive schemes and investor communications. Early insight into your implementation approach can help identify potential challenges and reduce pressure on reporting timelines. Organisations may also wish to review their public communications to understand which performance measures may fall within the scope of the new MPM disclosure requirements and assess whether their communication strategy should be updated.
In approximately 10 minutes, the scan provides:
To help organisations understand the potential impact and prioritise their implementation efforts, BDO has developed an IFRS 18 Readiness Scan.
What are the main changes under IFRS 18?
The new standard primarily impacts three areas:- The presentation of the statement of profit or loss, including new classifications and mandatory subtotals;
- The way information is aggregated and disaggregated within the financial statements; and
- The disclosure of Management-defined Performance Measures (MPMs).
Why start preparing now?
All entities preparing financial statements in compliance with IFRS Accounting Standards must apply IFRS 18 for annual reporting periods beginning on or after 1 January 2027. For entities with a 31 December year-end, this means the standard must be applied in their 2027 annual financial statements. Comparative information will also need to be restated and organisations will therefore need to evaluate and, where necessary, adapt their 2026 reporting data and processes to comply with 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.Organisations may need to adapt their chart of accounts, reporting structures, processes, controls, systems and data collection. The new requirements could also affect key performance indicators, financing covenants, management incentive schemes and investor communications. Early insight into your implementation approach can help identify potential challenges and reduce pressure on reporting timelines. Organisations may also wish to review their public communications to understand which performance measures may fall within the scope of the new MPM disclosure requirements and assess whether their communication strategy should be updated.
Take the assessment
BDO’s IFRS 18 Readiness Scan provides an initial assessment of your organisation's preparedness and highlights areas that may require further attention.In approximately 10 minutes, the scan provides:
- A visual overview of your organisation’s readiness across up to ten key IFRS 18 areas;
- An initial identification of potential gaps and risks;
- Practical guidance to help prioritise next steps and determine whether further analysis or support may be beneficial
