Waiting until 2027 to launch an IFRS 18 project would be too late. The standard applies to annual periods beginning on or after 1 January 2027 and requires retrospective application. For a group with a 31 December year-end, 2026 data must therefore support the comparative under the new structure.
Why 2026 is the pivotal year
The first IFRS 18 annual accounts published in 2027 will present a restated 2026 comparative. The first 2027 interim statements must also provide consistent comparative information. A group publishing half-year accounts will therefore need to present June 2026 under the new rules as early as June 2027.
The required data is not always available in current systems. Some classifications depend on the nature of the activity, transaction type or analytical information absent from the chart of accounts.
Work to begin from the 2026 close
- retain sufficient granularity in source data;
- document operating, investing and financing categories;
- identify Management-defined Performance Measures;
- analyze aggregated items and “other” labels;
- produce an initial bridge between IAS 1 and IFRS 18;
- test new subtotals in monthly and quarterly closes.
The risk of late restatement
A last-minute project generally multiplies Excel files, manual mappings and off-system adjustments. The consequences are familiar: loss of traceability, reconciliation difficulties, dependency on a few people and a longer publication timetable.
This is not solely an accounting standards issue. Consolidation, management control, investor relations, IT and data owners must share the same definitions.
Build dual reporting during the transition
The best approach is to produce the current income statement and an IFRS 18 version in parallel for several closes. This enables teams to:
- validate classification rules;
- measure differences from historical indicators;
- strengthen new controls;
- prepare financial communication;
- train teams before the effective date.
A realistic timetable
- Diagnostic: analyze current statements, indicators and data.
- Design: define the target model and classification rules.
- Prototype: restate one or more 2026 periods.
- Industrialization: integrate mappings, controls and reports into EPM.
- Dress rehearsal: produce a complete close in both formats before 2027.
Preparing from 2026 turns a regulatory constraint into an opportunity to strengthen reporting and reduce peripheral adjustments. It is also the best way to secure the comparatives that auditors and markets will examine.
Source
IFRS Foundation — IFRS 18 Presentation and Disclosure in Financial Statements