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:
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
The readiness assessment evaluates six critical areas that IFRS 18 will impact most significantly.
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 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 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.
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 including:
Profit and loss presentation structure
Classification of income and expenses
Management performance measure disclosures
Chart of accounts and general ledger structures
Consolidation and reporting models
Comparative restatement capability
Governance, documentation and controls
A Clear Path Forward
The outcome is a structured implementation roadmap that identifies the actions required to prepare for IFRS 18.
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:
- Chief Financial Officers
- Group Financial Controllers
- Heads of Financial Reporting
- Finance Transformation Leaders
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.
Book an IFRS 18 Readiness Assessment
If you would like to understand how IFRS 18 may impact your organisation, we can provide a structured readiness diagnostic and discuss the next steps for implementation. Book an assessment today.