Getting Ready for IFRS 18

With IFRS 18 - Presentation and Disclosure in Financial Statements becoming effective for periods commencing on or after 1 January 2027, organisations should already be assessing the impact on their financial reporting. The new standard will replace IAS 1 and represents one of the most significant changes to the presentation of financial statements in recent years.

While IFRS 18 does not change how assets, liabilities, income or expenses are recognised and measured, it does introduce important changes to how financial performance is presented and disclosed. These include new mandatory subtotals such as Operating Profit and Profit Before Financing and Income Taxes, a structured classification of income and expenses, enhanced aggregation and disaggregation requirements, and new disclosures relating to management-defined performance measures.

IFRS 18

Download 'Get ready for IFRS 18'

Explore the main changes introduced by IFRS 18, together with practical guidance to help organisations understand and address potential implementation challenges.

 

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According to Grant Thornton’s global IFRS publications, entities should not underestimate the implementation effort required. For many businesses, adoption may extend beyond updating financial statement templates and could require changes to chart of accounts structures, reporting processes, internal KPIs, financial systems and covenant reporting. The retrospective application requirements also mean that comparative information will need to be restated.

IFRS 18

Download 'Insights into IFRS 18'

This publication provides a snapshot of the main requirements introduced by IFRS 18, helping organisations understand the changes and their potential reporting implications.

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Key actions to consider now

• Perform an initial IFRS 18 impact assessment
• Review existing performance measures and non-GAAP metrics
• Assess whether finance systems can produce the required information
• Plan for comparative reporting requirements
• Provide training to finance teams, management and boards

Although compliance is a key driver, IFRS 18 also presents an opportunity to enhance transparency, improve comparability and strengthen communication with stakeholders.

How Grant Thornton Malta can help

Grant Thornton Malta can support organisations through IFRS 18 impact assessments, financial statement reviews, training workshops and implementation planning to help ensure a smoother transition and avoid last-minute challenges as the effective date approaches.