AREA OF FOCUS
IFRS 18.
A new standard. Clear path.
IFRS 18 changes how companies present their income statement and disclose performance measures — effective 2027, with comparatives required from 2026. The scope of change varies by organisation. We help you understand yours — and navigate it step by step.
AREA OF FOCUS
IFRS 18.
A new standard. Clear path.
IFRS 18 changes how companies present their income statement and disclose performance measures — effective 2027, with comparatives required from 2026. The scope of change varies by organisation. We help you understand yours — and navigate it step by step.
WHAT IS IFRS 18?
WHAT IS IFRS 18?
A new presentation standard — replacing IAS 1
A new presentation standard — replacing IAS 1
IFRS 18 introduces mandatory categories for the income statement, two new defined subtotals, and clear requirements for how Management-Defined Performance Measures (MPMs) must be disclosed. It does not change the recognition or measurement of assets and liabilities. But it fundamentally changes how financial performance is presented and communicated.
IFRS 18 introduces mandatory categories for the income statement, two new defined subtotals, and clear requirements for how Management-Defined Performance Measures (MPMs) must be disclosed. It does not change the recognition or measurement of assets and liabilities. But it fundamentally changes how financial performance is presented and communicated.
KEY IMPLICATIONS
KEY IMPLICATIONS
What IFRS 18 means in practice
What IFRS 18 means in practice
Income statement presentation
Income statement
presentation
Systems, processes and controlls
Systems, processes
and controlls
Management-Defined Performance Measures
Management-Defined Performance Measures
Wider business impact
Wider business impact
New mandatory categories and defined subtotals require organisations to reassess the classification and presentation of income and expenses. For some business models, the necessary judgements can be significant.
New mandatory categories and defined subtotals require organisations to reassess the classification and presentation of income and expenses. For some business models, the necessary judgements can be significant.
The new presentation requirements may require updates to chart of accounts, ERP and consolidation systems, reporting processes and internal controls.
The new presentation requirements may require updates to chart of accounts, ERP and consolidation systems, reporting processes and internal controls.
Qualified MPMs require additional disclosures, including reconciliations and supporting explanations. Existing investor communications and financial publications may need to be reviewed and aligned.
Qualified MPMs require additional disclosures, including reconciliations and supporting explanations. Existing investor communications and financial publications may need to be reviewed and aligned.
Changes introduced by IFRS 18 can extend beyond financial reporting, affecting KPI definitions, performance-based remuneration arrangements and contractual references to specific financial measures.
Changes introduced by IFRS 18 can extend beyond financial reporting, affecting KPI definitions, performance-based remuneration arrangements and contractual references to specific financial measures.
TIMELINE
TIMELINE
From assessment to first reporting
From assessment to first reporting
Now
Now
Start your IFRS 18 preparation
Start your IFRS 18 preparation
Preparations should already be underway. If your initial impact assessment is not yet complete, now is the time to act.
Preparations should already be underway. If your initial impact assessment is not yet complete, now is the time to act.
BARNS Step 1
H2 2026 - Q1 2027
H2 2026 - Q1 2027
Build the foundation
Build the foundation
Complete the detailed technical assessment, redesign reporting structures and prepare systems and processes for implementation.
Complete the detailed technical assessment, redesign reporting structures and prepare systems and processes for implementation.
BARNS Steps 2 & 3
2027
2027
Implement, test and validate
Implement, test and validate
Embed the new reporting framework, perform dry runs, validate classifications and disclosures, and establish a robust reporting routine.
Embed the new reporting framework, perform dry runs, validate classifications and disclosures, and establish a robust reporting routine.
BARNS Steps 4 - 6
FY 2027 Reporting
FY 2027 Reporting
First mandatory application
First mandatory application
Publish the first IFRS 18 financial disclosures, including comparative information under the new requirements.
Publish the first IFRS 18 financial disclosures, including comparative information under the new requirements.
BARNS Step 7
Approximate timelines. Actual project duration depends on data availability, stakeholder responsiveness, organisational capacity and implementation scope. Simplified presentation.
THE BARNS APPROACH
THE BARNS APPROACH
The IFRS 18 project journey
Every situation is different — but most projects follow a recognisable arc. The depth and focus of each phase depends on the specific standard, organisation and starting point. The timeline above illustrates how these phases typically unfold over the course of a first-time implementation project.
Every situation is different — but most projects follow a recognisable arc. The depth and focus of each phase depends on the specific standard, organisation and starting point. The timeline above illustrates how these phases typically unfold over the course of a first-time implementation project.
1
Requirements & intial impact assessment
2
Detailed technical assessment & addressing gaps
3
Reporting framework design
4
Implementation & coordination
5
Training & knowledge transfer
6
Dry run & validation
7
First time reporting & audit readiness
Looking closer at the first step
Based on the readiness impact summary, you can decide whether to continue internally or move into Step 2 Detailed technical assessment phase together with BARNS.
Based on the readiness impact summary, you can decide whether to continue internally or move into Step 2 Detailed technical assessment phase together with BARNS.
The auditor's perspective – built in from the start:
Led by a licensed Wirtschaftsprüfer (German Public Auditor / CPA equivalent), BARNS understands not only how new reporting requirements are implemented, but also how they may later be challenged in an assurance context.
The auditor's perspective – built in from the start:
Led by a licensed Wirtschaftsprüfer (German Public Auditor / CPA equivalent), BARNS understands not only how new reporting requirements are implemented, but also how they may later be challenged in an assurance context.
Let's find out where you stand.
Let's find out where you stand.
Whether you're just getting started or already preparing for implementation, the first step is understanding your current position. Together, we identify likely impact areas and define a pragmatic way forward.
Whether you're just getting started or already preparing for implementation, the first step is understanding your current position.
Together, we identify likely impact areas and define a pragmatic way forward.
Advisory for reporting, accounting and transformation.
© 2026 BARNS GmbH Wirtschaftsprüfungsgesellschaft. All rights reserved.
Advisory for reporting, accounting and transformation.
© 2026 BARNS GmbH Wirtschaftsprüfungsgesellschaft. All rights reserved.
Advisory for reporting, accounting and transformation.
© 2026 BARNS GmbH Wirtschaftsprüfungsgesellschaft. All rights reserved.
Advisory for reporting, accounting and transformation.
© 2026 BARNS GmbH Wirtschaftsprüfungsgesellschaft. All rights reserved.