IFRS 18 IN PRACTICE

IFRS 18 in Practice is a practical field guide for accounting and finance professionals preparing for one of the most significant changes to financial statement presentation in recent years.

IFRS 18 replaces IAS 1 and introduces new requirements for the presentation and disclosure of financial performance, including defined subtotals, operating, investing and financing categories, management-defined performance measures (MPMs), and enhanced aggregation and disaggregation requirements.

But understanding the Standard is only the beginning. The real challenge is putting it into practice.

This book takes you from IFRS 18 requirements to implementation decisions. Rather than simply summarizing the Standard, it explains how to build a classification engine, assess an entity's main business activities, redesign the statement of profit or loss, manage expenses by nature and function, identify and govern MPMs, redesign data flows, prepare comparative information, and build an audit-ready evidence trail.

Through realistic composite case studies, practical workshops, decision checkpoints, templates, and implementation tools, you will learn how to deal with issues such as:

• Classifying income and expenses under the new category structure

• Determining whether investing or financing is a main business activity

• Handling interest, foreign exchange, derivatives and other judgement-intensive items

• Redesigning the statement of profit or loss

• Managing expenses presented by function and the related nature disclosures

• Identifying which management performance measures fall within the MPM requirements

• Building MPM reconciliations, including tax and non-controlling-interest effects

• Improving aggregation and disaggregation of financial information

• Connecting accounting classifications to systems and source data

• Preparing retrospective comparative information

• Establishing governance, controls and audit-ready judgement papers

• Managing the transition to IFRS 18 through a structured implementation programme

The book also includes 11 practical workshops and three implementation templates covering classification registers, MPM governance, comparative restatement, disclosure design, judgement papers, and publication-readiness.

Whether you are a CFO, financial controller, accountant, auditor, finance manager, investor-relations professional, accounting academic, or advanced accounting student, this book is designed to answer the question that matters most:

How do I actually apply IFRS 18 in practice?

IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with early application permitted. This guide is designed to help organizations move from awareness to implementation before the first reporting cycle under the new Standard.

This independent guide is intended for educational and professional purposes and does not constitute accounting, audit, legal, or tax advice. Readers should consult the official IFRS 18 requirements and exercise entity-specific professional judgement.

IFRS(R), IASB(R) and related marks are trademarks of the IFRS Foundation. This book is not affiliated with, endorsed by, or approved by the IFRS Foundation or the International Accounting Standards Board.