READINESS ASSESSMENT
IFRS 18 Readiness Assessment
Understand Your Organisations Readiness for the New Profit and Loss Structure
IFRS 18 introduces the most significant change to profit and loss presentation in decades. While the standard focuses on presentation and disclosure, the operational impact for finance teams can be considerable.
New subtotals, stricter classification requirements, enhanced governance over management performance measures, and the need to restate comparative information will affect how financial data is structured, governed and reported.
For many organisations the question is no longer whether IFRS 18 will require change, but where those changes will be required and how significant they may be.
The HAYNE IFRS 18 Readiness Assessment helps finance teams evaluate their current reporting environment and identify potential risks before the standard becomes effective.
Most Organisations Underestimate IFRS 18 Implementation
Although IFRS 18 is often described as a presentation change, the reality is that many organisations will need to review multiple core areas of their reporting process.
Profit And Loss Reporting Structures
Classification Policies For Income And Expenses
Management Performance Measures And Reconciliations
Chart Of Accounts And Reporting Hierarchies
Consolidation And Reporting Systems
Comparative Reporting Processes
Without early preparation, these changes can create unnecessary complexity during implementation. A structured diagnostic allows finance teams to understand their current position and prioritise the areas that require attention.
Two Stage IFRS 18 Diagnostic
HAYNE provides a structured two-stage diagnostic designed to move organisations from awareness through to implementation planning. The process begins with a Readiness Assessment, followed by a deeper Gap Assessment where required.
| Area |
Stage 1
IFRS 18 Readiness Assessment |
Stage 2
IFRS 18 Gap Assessment |
|---|---|---|
| Purpose | High level diagnostic to understand how prepared the organisation is for IFRS 18 | Detailed evaluation of the reporting environment against IFRS 18 requirements |
| Focus | Identifies potential risk areas across reporting, systems and governance | Identifies specific gaps and required remediation actions |
| Depth | High level review | Detailed analysis |
| Topics Covered | Presentation, classification, MPMs, systems, comparatives, governance | Presentation structure, classification policy, MPM disclosures, systems architecture, comparatives, governance, disclosures |
| Approach | Structured diagnostic questionnaire with expert review | Detailed technical assessment against IFRS 18 requirements |
| Output | Red, Amber, Green readiness scorecard | Detailed gap analysis and implementation roadmap |
| Typical Outcome | Identifies areas requiring deeper investigation | Provides specific actions, owners and priorities |
| When Used | Early stage evaluation | Implementation planning |
| Ideal For | Finance leaders wanting a quick view of IFRS 18 readiness | Organisations preparing for IFRS 18 implementation |
What The IFRS 18 Readiness Assessment Covers
HAYNE provides a structured two-stage diagnostic designed to move organisations from awareness through to implementation planning. The process begins with a Readiness Assessment, followed by a deeper Gap Assessment where required.
Presentation
IFRS 18 introduces a defined structure for the profit and loss statement, requiring income and expenses to be classified into operating, investing and financing categories.
The assessment reviews whether your current reporting structures can support these requirements.
Classification
The new standard increases the importance of consistent classification decisions across the group.
We assess whether items such as interest, foreign exchange movements, investment income and lease related charges are clearly identifiable and consistently classified.
Management Performance Measures
IFRS 18 increases the transparency and governance required around non-GAAP measures (MPMs) used in public communications.
The assessment evaluates whether these measures are clearly defined, governed and reconcilable to IFRS subtotals.
Systems And Data Structures
Many organisations discover that IFRS 18 highlights limitations within their chart of accounts, general ledger structures or consolidation models.
We review whether your systems can support the required classifications and subtotals without reliance on manual adjustments.
Comparative Reporting
IFRS 18 requires organisations to restate comparative financial information.
The assessment evaluates whether historical data and reporting systems can support this requirement.
Governance And Controls
The standard increases the need for clear documentation of classification judgements and performance measure definitions.
We assess whether governance structures, accounting policies and internal controls support the new reporting requirements.
STAGE 2
IFRS 18 Gap Assessment
Where the readiness assessment identifies potential risks, HAYNE can perform a deeper IFRS 18 Gap Assessment. This detailed review evaluates your reporting environment against specific IFRS 18 requirements.
A Clear Path Forward
The outcome is a structured implementation roadmap that identifies the actions required to prepare for IFRS 18. Providing specific actions, owners and priorities.
Who This Assessment Is For
The IFRS 18 diagnostic is designed for organisations that report under IFRS and are preparing for upcoming reporting changes. Typical roles include:
It is particularly valuable for organisations that maintain complex group reporting structures or rely heavily on manual reporting adjustments.
Why Work with HAYNE Solutions?
HAYNE Solutions specialises in financial consolidation, reporting and performance management.
We support finance teams to modernise reporting processes, strengthen governance and implement scalable reporting platforms that support evolving regulatory requirements.
Our experience includes working with organisations managing complex consolidation environments and regulatory reporting changes.
Finance-Led Delivery
Implemented by qualified accountants.
Proven Expertise
Trusted by leading organisations.