IFRS 18 in Practice: Preparing the 2027 Transition File

IFRS 18 applies to annual reporting periods beginning on or after 1 January 2027, introducing new requirements for presenting financial performance and explaining management-defined performance measures. For calendar-year reporters, preparing comparative information for 2026 makes transition planning an immediate priority.

This webinar demonstrates how accountants and auditors can organise a practical IFRS 18 transition file that connects technical accounting decisions with financial statement preparation. Participants will explore the new operating, investing and financing categories, required subtotals and the assessment of specified main business activities. The session also examines how to document classification judgements, identify management-defined performance measures and prepare the necessary reconciliations and disclosures.

The webinar covers aggregation and disaggregation principles, the presentation and disclosure of operating expenses, and consequential changes to the statement of cash flows. Through practical examples, participants will see how accounting conclusions translate into financial reporting mappings, comparative information and supporting review evidence.

Particular attention will be given to retrospective application, the reconciliation of comparative profit or loss line items and requirements affecting interim financial reporting during the first year of application.

The session concludes with a structured approach to assigning responsibilities, identifying data gaps and documenting accounting decisions. Participants will gain practical guidance on preparing a comprehensive transition file that supports consistent IFRS 18 implementation and effective review ahead of the first reporting cycle.

Key Topics Discussed:

• Overview of IFRS 18 and its effective date and transition requirements

• Classification of income and expenses into operating, investing and financing categories

• Identification and assessment of specified main business activities

• Presentation of required subtotals and changes to the statement of profit or loss

• Identifying and documenting management-defined performance measures (MPMs)

• Preparing reconciliations and disclosures for management-defined performance measures

• Applying aggregation and disaggregation principles in financial reporting

• Presentation and disclosure of operating expenses

• Consequential changes to the statement of cash flows

• Preparing financial reporting mappings and comparative information

• Retrospective application and reconciliation of comparative profit or loss line items

• Interim financial reporting requirements during the first year of IFRS 18 application

• Documenting accounting judgements, supporting evidence and review procedures

• Establishing transition responsibilities, identifying data gaps and preparing for IFRS 18 implementation