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Navigating IFRS 18: Your Transition Strategy with Workiva

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Streamline, automate, and ensure compliance for the new standard of financial presentation.

 
We want to be by your side as you navigate this transition. To support you during this period, we have put together this guide to break down the key changes under IFRS 18 and show you exactly how your Workiva platform can simplify, automate, and streamline compliance.
  • What is IFRS 18: A new IFRS Financial Reporting Standard that significantly changes how companies classify and present information in their statement of profit or loss (P & L) as well as how Management-Defined Performance Measures (MPMs) are defined and reported.
  • How does it affect reporting: Mandates specific categories for the Statement of Profit or Loss, new aggregation/disaggregation requirements, and detailed MPM disclosures (requiring full reconciliation to IFRS totals).
  • When: Mandatory for annual reporting periods on or after Jan 1, 2027 (early adoption permitted; 2026 comparative data required).
  • Who is affected: All companies across all industries preparing financial statements under IFRS Accounting Standards.
 
📝 Note: IFRS 18 does not change how companies recognize and measure items in financial statements. However, it significantly changes presentation and disclosure requirements, demanding adaptations across financial reporting solutions, consolidation tools, and ERP platforms.

 

Why it matters: Strategic reporting challenge

  • P&L Structure Rework: Companies must overhaul existing income and expense classifications, add two new defined subtotals to the P&L, and design new reporting systems and processes.
  • Increased Data Granularity: Meeting presentation requirements demands capturing and categorizing financial data at a more detailed level.
  • Auditability & Control Pressure: Providing clear, fully traceable reconciliations (especially for MPMs and comparative periods) will place heavy strain on data integrity and internal controls.
  • Risk of Manual Errors: Relying on manual adjustments and disconnected systems makes compliance slow, cumbersome, and risk-prone.

❓Why Act Now? Companies that start early can optimize data readiness, minimize manual rework, and future-proof their reporting.

Implementing IFRS 18

Partner with Workiva and seamlessly connect your ERP and consolidation systems into a single collaborative hub. It centralizes your reclassification logic, making the transition controlled and audit-ready while streamlining the process for multi-entity reporting.

Here’s how we help you today:

  • Retrospective Restatements with Range Linking: Easily push P&L structural updates across all entities while managing dual 2026 reporting frameworks (IAS 1 & IFRS 18) side-by-side in one controlled environment.
  • Disclosure Standardization via Content Libraries & Style Guides: Ensures narrative consistency across new MPM footnotes and disaggregation disclosures, maintaining brand integrity while meeting new auditing requirements.
  • Remapping the Chart of Accounts with Wdata: Solves the challenge of data granularity by extracting "nature of expense" data (e.g., inventory write-downs) that may be buried in functional ERP lines. It automates reclassification logic with full traceability. (Ask your Workiva representative about how to use Wdata, or start here.)
  • Workiva AI: Leverage Workiva AI to help evaluate your current Annual Report, supporting your team in identifying potential disclosure and structural updates for IFRS 18 compliance.

📝 Note: Please always consult your external auditor for legal and accounting advice regarding your IFRS 18 compliance.

🔔 Reminder for IFRS 18 compliance: Check XBRL® tags: Give yourself (or your XBRL tagging team) time to review the XBRL tags, or machine readable metadata, within your statements.

Ready to get started?

  • Watch the Webinar: View our “Getting ready for IFRS18 Webinar” to see how to best utilize the platform during this transition. Or learn more The IFRS 18 Summary for CFOs and Financial Reporting Teams.
  • Partner with Workiva to Simplify IFRS 18 Compliance: Turn complex regulatory requirements into streamlined, automated workflows. Let’s get your systems audit-ready ahead of your reporting timeline.
  • Next Steps: If you would like to explore services to assist with your IFRS 18 changes,
    please contact your Workiva Partner or your Account Owner. For any other questions,
    reach out to your CSM.
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