Programme overview
Technical depth: Practitioner · Practical mode: Modelling build
Introduction
IFRS 18 replaces IAS 1 for annual periods beginning on or after 1 January 2027 and changes how every entity presents profit or loss. Income and expenses move into new categories, new subtotals become mandatory, and performance measures used in investor communication must be disclosed and reconciled in an audited note. Because comparatives are restated, mapping work must start well before adoption. This Core Concept course takes reporting teams through the requirements in practice, and each participant builds an IFRS 18 Transition Pack: a restated income statement, a draft management-defined performance measure note and an implementation timeline.
Course Objectives
- Classify income and expenses into the operating, investing, financing, income taxes and discontinued operations categories, including for entities with specified main business activities
- Restructure the statement of profit or loss around the operating profit and profit before financing and income taxes subtotals
- Identify management-defined performance measures in public communications and prepare the required note and reconciliations
- Apply the aggregation and disaggregation principles and the specified expenses by nature disclosure to statements and notes
- Assess the consequential effects on the statement of cash flows, earnings per share, interim reports and segment information
- Prepare a transition plan covering chart of accounts changes, restated comparatives and stakeholder communication
Target Audience
- Financial reporting managers responsible for annual and interim financial statements
- Group controllers and consolidation managers overseeing charts of accounts and reporting packs
- Investor relations and FP&A managers who define and publish performance measures
- Technical accounting and policy managers interpreting new standards
- Finance systems managers accountable for mapping and reporting tool changes
Course Outline
Day 1: The Case for IFRS 18 and Current-State Review
- IFRS 18 Objectives, Scope and Effective Date: From IAS 1 to IFRS 18
- Comparability Gaps in Current Income Statements from an Investor Perspective
- Requirements Carried Forward and the Renamed IAS 8 Basis of Preparation
- Income Statement Current-State Diagnostic Template
- Impact Assessment Heat Map by Reporting Line and Entity
Day 2: Categories, Subtotals and Main Business Activities
- Operating, Investing and Financing Category Classification Decision Tree
- Income Taxes and Discontinued Operations Categories
- Operating Profit and Profit Before Financing and Income Taxes Subtotals
- Main Business Activity Assessment for Banks, Insurers and Investment Entities
- Foreign Exchange Differences and Derivative Gains Classification Rules
Day 3: Presentation, Aggregation and Performance Measures
- Aggregation and Disaggregation Principles: Shared Characteristics Test
- Nature versus Function Presentation and the Specified Expenses by Nature Note
- Minimum Line Items and the Role of Primary Statements versus Notes
- Management-Defined Performance Measure Identification Checklist
- MPM Note: Reconciliation, Income Tax and Non-Controlling Interest Effects
Day 4: Consequential Amendments, Controls and Problem Cases
- IAS 7 Changes: Operating Profit Starting Point and Interest and Dividend Classification
- IAS 33 Additional Earnings per Share Measures and IAS 34 Interim Requirements
- IFRS 8 Segment Measures and MPM Consistency Review
- MPM Governance and Disclosure Controls against IOSCO Non-GAAP Guidance
- Chart of Accounts Remapping and IFRS Accounting Taxonomy Tagging Changes
Day 5: Modelling Build and the Transition Pack
- Restated Income Statement Build for a Diversified Group Case
- Comparative Period Reconciliation from IAS 1 to IFRS 18
- MPM Note Drafting from an Investor Presentation Case
- IFRS 18 Transition Pack Assembly and Implementation Timeline
- Peer Review Panel and Transition Pack Defence
Skills You Will Gain
- Income Statement Classification
- Financial Statement Presentation Design
- Performance Measure Governance
- Disclosure Note Drafting
- Cash Flow Statement Restatement
- Reporting Systems Mapping
- Transition Project Planning
- Technical Accounting Judgement
Why Attend This Course
- Return to work with an IFRS 18 Transition Pack built on a realistic group, ready to adapt to your own financial statements
- Explain to boards, auditors and analysts how reported profit subtotals and performance measures will change
- Spot classification and MPM issues early enough to resolve them before comparatives have to be restated
- Compare implementation approaches with reporting teams from industrial, financial services and service-sector groups
Conclusion
IFRS 18 is the most significant change to the income statement in two decades, and its effects reach cash flows, earnings per share, segment reporting and investor communication. This course moves from the reasons for the standard, through its categories, subtotals and disclosure principles, to the consequential amendments and control issues that complicate adoption. The final day turns that material into an IFRS 18 Transition Pack, giving participants a working model and a clear plan for restating comparatives and presenting results under the new structure.