The introduction of the IFRS 18 standard marks a major development for the finance function. Scheduled for full application in 2027, this reform nevertheless requires preparation from 2026, particularly with regard to collecting and structuring comparative data.
In this context, financial solution providers are playing an increasingly important role in supporting companies. This is notably the positioning of Lucanet, which highlights a unified platform to help finance departments manage this regulatory transformation.
A major overhaul of the income statement
IFRS 18 introduces a new income statement structure based on five main categories:
- operating activities,
- investing activities,
- financing activities,
- income taxes,
- discontinued operations.
This new architecture includes mandatory subtotals, notably operating profit and profit before financing and income taxes. The objective is to harmonise the presentation of financial performance and improve comparability between companies.
Stronger framework for performance measures
The Management Performance Measures (MPMs), widely used by companies in their financial communications, are now subject to a stronger framework.
IFRS 18 requires:
- a formalised definition of the measures,
- mandatory reconciliation with IFRS aggregates,
- their inclusion in the audited financial statements.
This development enhances transparency but also increases financial data governance requirements.
Greater requirements for data and its structuring
The standard introduces a higher level of granularity in financial reporting:
- a more detailed breakdown of expenses,
- harmonised classifications at group level,
- better consideration of foreign exchange effects and financial flows.
These requirements put pressure on traditional systems, which are often fragmented or heavily dependent on manual processing.
2026: a key stage in the transition
While IFRS 18 becomes fully applicable in 2027, preparation begins as early as 2026. Companies will need to produce restated comparative data, which requires precise tracking of transactions from the start of the financial year.
Without advance planning, organisations face:
- significant manual restatements,
- increased reliance on Excel tools,
- and high operational and audit risk.
The role of integrated solutions in the transition
In this context, platforms such as Lucanet’s position themselves as integrated environments covering the entire financial cycle.
The approach is based on several areas:
- automated classification of data according to IFRS 18,
- management and traceability of MPMs,
- unified consolidation and reporting,
- production of financial statements and disclosures.
The objective is to secure the close-to-disclose process while reducing the operational workload.
A transformation that goes beyond compliance
IFRS 18 is not limited to a regulatory development. It accelerates a broader transformation of the finance function, characterised by:
- greater standardisation of practices,
- stronger transparency requirements,
- and closer integration between performance and reporting.
IFRS 18 represents a structural transformation of financial reporting. For finance departments, the challenge is not limited to compliance, but also concerns their ability to adapt their processes and tools.
In this context, integrated solutions such as those offered by Lucanet form part of an approach to supporting this transition, by simplifying data management and strengthening the reliability of financial reporting.
source: Lucanet
