IFRS 18: Present your performance with clarity, comparability and confidence

Presentation & Disclosure in financial statements

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From 1 January 2027, IFRS 18 replaces IAS 1 and reshapes how results are presented. It introduces new categories and defined subtotals in the statement of profit or loss, strengthens aggregation/disaggregation and labelling, and brings transparent disclosures for Management-defined Performance Measures (MPMs).  

Early preparation enables a stronger, investor-ready performance story and a smoother transition to IFRS 18.
 

IFRS 18 at a glance: 

  • Who should act now: restate comparatives, run a 2026 dry run, update your systems, align KPIs and covenants. 
  • What changes: new P&L categories and defined subtotals, stronger aggregation/disaggregation; transparent MPMs. 
  • Why: investor clarity, peer comparability, coherent management story. 
 

Who should act now

  • Listed and large private groups preparing IFRS financial statements. 
  • Belgian subsidiaries reporting IFRS figures to their international group, implementing IFRS 18 in line with group policies.

What’s changing

  • New mandatory categories: operating, investing, and financing (alongside income tax and discontinued operations). These are anchored in how the entity conducts its main business activities.  
  • Two defined subtotals to improve comparability: operating profit (or loss) and profit before financing and income tax.  
  • MPMs are subtotals of income and expenses used in public communications outside the financial statements (e.g., press releases, management reports) to convey management’s view of performance. Examples include Adjusted EBITDA, Adjusted profit or loss, and Adjusted operating profit.  
  • IFRS 18 requires a single note disclosure that defines each MPM, explains its usefulness, reconciles it to the nearest IFRS subtotal/total, and shows tax and noncontrolling interest effects.  
  • Enhanced principles require entities to group items with similar characteristics and present material items separately, reducing diversity in practice and improving clarity.  

For a detailed technical walkthrough, flowcharts and examples, check out BDO Global’s IFRS Accounting Standards In Practice: IFRS 18 and IFRS Accounting Standards - BDO.

Why IFRS 18 matters

  • Improve investor clarity and peer comparability through IFRS-anchored subtotals.  
  • Align your management story to audited subtotals with transparent MPM reconciliations.  

Practical impacts for your entity

  • Remapping the profit or loss presentation to new categories and subtotals; updating accounting policy wording and notes.  
  • Inventorying KPIs/MPMs, agreeing definitions/usefulness statements, designing reconciliations and controls for disclosures.  
  • Updating chart of accounts and reporting tools to capture classifications required by IFRS 18 and to support MPM reconciliations and analytics.  
  • Assessing impacts on financing covenants, bonus schemes and other arrangements linked to performance metrics.  
  • Cross-functional engagement across Finance, IT, HR, Treasury and investor relations.  

Transition with confidence together with BDO

From scoping and policy design to dry runs, go-live and training,
Our IFRS experts help you every step of the way, with constant alignment to your calendar and reporting commitments.

1
Now - Q2 2026
Readiness diagnostics and impact assessment

Rapid review, benchmarking, and model disclosures; MPM inventory and gap analysis.

How BDO can help: We provide you with a rapid readiness review, benchmarking and model disclosures.
2
Q3 2026
Design and build

Chart of accounts and reporting pack remapping, mapping charts, system configuration, draft notes, MPM governance and control design.

How BDO can help: We assist you with templates, tooling and training.
3
Q4 2026
Dry run on 2025 or interim 2026 data

Full rehearsal, optimisation, covenant/bonus impact checks, and audit preclearance.

How BDO can help: We help you execute the dry run and resolve issues.
4
2027
Go-live and continuous support

Support through first reporting with restated comparatives and postimplementation enhancements.

How BDO can help: We always remain on-call for technical support and continuous improvement.

Resources

Looking for tailor-made advice? 

Book an IFRS 18 Readiness Review with our IFR Advisory team to scope your impacts and plan your 2026 dry run.