Assess your IFRS 18 starting point across five key areas
Transitioning to IFRS 18 will affect more than just your financial statement presentation. It will require coordination across finance, systems, governance, and policy functions.
Understanding where you are today is the foundation of any successful IFRS 18 transition. Organizations should evaluate their readiness across five dimensions. We’ve outlined these below, but keep in mind they’re not exhaustive and additional factors may need to be addressed based on your specific circumstances.
This is the cornerstone of IFRS 18 compliance, as it will dictate the scope of changes required across your systems and chart of accounts.
Key considerations:
- How closely does your current income statement align with the new IFRS categories?
- Do you have the data and controls in place to support the classification consistently?
- Will you need to modify your chart of accounts or reporting processes to comply?
- Are your current disclosures sufficient to meet the new disaggregation requirements?
MPMs are a new concept introduced by IFRS 18 and will now form part of audited financial statements. As a result, MPM reporting will be subject to rigorous review and audit. Because MPMs are new, significant judgement may be required, as understanding exactly what qualifies as an MPM under the standard may not always be straightforward or readily apparent.
Take stock of how your organization currently defines, calculates, and communicates non-GAAP measurements. Strong governance in this area will be essential for compliance and credibility.
Key considerations:
- Have you documented all non‑IFRS metrics communicated externally and assessed which of them qualify as MPMs under IFRS 18?
- Do you have a process for reconciling each MPM to the nearest IFRS subtotal?
- Is there a board‑approved policy on the creation, labelling, and use of MPMs?
- Do you maintain a change log for definitions and ensure consistency across periods and communications?
One of the most complex and resource-intensive aspects of implementing IFRS 18 will be updating systems and the chart of accounts to support the new way information needs to be presented.
Assess whether your current structure can accommodate these requirements or whether remapping is needed. Keep in mind that comparative figures may require restating, so early planning is critical.
Key considerations:
- Can your chart of accounts tag transactions to the new IFRS 18 categories (operating, investing, financing) in addition to income taxes and discontinued operations?
- Do your systems capture expenses by nature (e.g., depreciation, salaries, interest) to support note disclosures and disaggregation?
- For entities within a group that also report under other local frameworks, have you mapped IFRS classifications to local GAAP categories?
- Are prior years’ data retained at sufficient granularity to restate comparatives?
To comply with IFRS 18, you may need to adjust your enterprise resource planning (ERP) system, reporting processes, and classification structure in your chart of accounts.
Key considerations:
- Does your ERP have the capability to add IFRS 18 dimensions or categories without manual workarounds?
- Are your consolidation tools configured to produce IFRS 18‑compliant statements and notes automatically?
- Do you have systems or scripts that automate MPM reconciliations and comparative restatements?
- Can your financial reports be updated to handle IFRS 18’s requirements (MPM notes, category presentation)?
- Have you clearly assigned data ownership (e.g., finance vs. IT) for IFRS 18 tagging and reporting tasks?
Board and audit committee oversight will be essential throughout the transition to IFRS 18, as will the development of updated policies and cross-functional coordination between finance, IT, legal, and investor relations. Early engagement with these stakeholders can help ensure alignment and minimize surprises down the road.
Key considerations:
- Do you have an IFRS 18 steering committee or project governance structure?
- Has management briefed the board or audit committee on IFRS 18 impacts and developed a training plan?
- Are finance, legal, investor relations, IT and operations engaged in transition planning?
- Do you have a plan for staff training, stakeholder communication, and managing change fatigue?
- Have you estimated and approved budgets for IFRS 18 transition (consulting, systems, training)?
Assessing organizational complexity for IFRS 18 transition
An organization's complexity—such as its size, multinational structure, diverse operations, number of subsidiaries, and business models—can significantly impact the effort required to transition to IFRS 18. More complex organizations face amplified challenges, including higher costs, longer timelines, and greater risk of inconsistencies.
Complete the questionnaire to gauge your organizational complexity. Based on your responses, you’ll receive information on complexity as you transition to IFRS 18, sent straight to your inbox.
The information sent as a result of completing this questionnaire is provided in general terms based on details supplied by you and on general market intelligence. The information should not be used or relied upon to cover your specific IFRS 18 transition, and you should not act, or refrain from acting, upon the information without obtaining specific professional advice. If you’d like support navigating how IFRS 18 applies to your organization, reach out to our team for tailored guidance.
IFRS 18 timeline: Four steps towards implementation
Once you understand your starting point, the next step is to map out a realistic timeline and road map. Transitioning for IFRS 18 isn't something that happens in a single quarter. It requires a phased approach that aligns resources, systems, and teams as you move from assessment to implementation.
Below is an overview of a typical IFRS 18 adoption process, outlining key priorities and the structured approach we use to guide clients through implementation. This is a sample of the timeline that could be adjusted to fit within your organization’s timelines and constraints.
Establish your baseline
This phase is critical, as it sets the foundation for everything that follows. Without a clear understanding of your organization's readiness and the effort required, it's difficult to allocate resources effectively or set realistic expectations with stakeholders.
- Understand new disclosure demands and their implications.
- Evaluate how IFRS 18 may reshape your organization’s financial statements, chart of accounts, and system capabilities.
- Identify non-IFRS measures that could be considered MPMs.
- Educate your teams on the new technical requirements, templates, and reconciliations needed.
- Engage with external auditors to ensure alignment on key judgments and conclusions drawn.
Strategy and planning
Define your road map.
- Design your future-state income statement structure.
- Determine required updates to your chart of accounts and systems.
- Define change management and communication plans.
- Review your public communication in scope of IFRS 18 and identify which MPMs will need to be included as part of your financial statements.
- Engage early and regularly with your auditors to discuss emerging interpretations of IFRS 18 as they continue to develop through ongoing IFRS standard-setting and implementation discussions.
Deploy and transition
Execute system and process changes. This is where strategy turns into action. Testing is critical to ensure accuracy and minimize disruption.
- Configure systems and revise reporting templates.
- Update policies, disclosures, and governance documentation.
- Prepare newly required note disclosures, including MPMs and, in certain cases, reconciliations of total depreciation, amortization, employee benefits, and impairment losses and reversals.
- Conduct dry runs and comparative restatements.
- Once you’ve identified the required adjustments, develop a strategy to communicate the implications to key stakeholders, including executive leadership teams, the audit committee, and investor relations. Stakeholders will need clarity on how IFRS 18 affects performance metrics and on the narrative required to communicate those changes consistently.
Implement and maintain compliance
Transition to IFRS 18-compliant reporting.
- Finalize opening balances and comparative financial information.
- Prepare year-end financial statements under IFRS 18.
- Embed ongoing controls, governance, and training.
Whether you are at the initial discovery stage or deep in system configuration, our team can guide you through each phase. Our collaborative, hands-on approach combines technical knowledge of the IFRS framework with practical implementation experience that alleviates the complexity and resource strain of compliance.
End-to-end support for IFRS 18 adoption
Organizations that begin assessing their IFRS 18 readiness now will be in a far stronger position to manage the transition smoothly. Early action allows more time for testing, governance alignment, and internal communication, minimizing disruption when reporting deadlines arrive.
At BDO, we help you navigate IFRS 18 implementation with a clear, structured approach, so you can focus on managing your business:
- Technical depth: We have extensive experience supporting IFRS transitions and disclosure modernization projects, backed by industry-specific knowledge.
- Solution-led delivery: Our support goes beyond compliance to process improvement.
- Global resources: We combine the global resources of a large firm with a pragmatic approach tailored to growth-oriented organizations, where necessary.
- End-to-end guidance: From diagnostic to go-live, our solutions are tailored to your unique circumstances.
Take the next step towards efficiency IFRS 18 compliance. Complete our IFRS 18 complexity questionnaire or contact our Accounting Advisory team to discuss your results and develop your IFRS 18 adoption road map.
Take the next step in your IFRS 18 journey—reach out to our team to get started.
Mary Mathews, Partner, Accounting Advisory
Anne-Marie Henson, Partner, National Industry Leader
Derek Youdelis, Senior Manager, Accounting Advisory and National Accounting Standards
The information in this publication is current as of Jan. 22, 2026.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.