IFRS 18 process redesign is the structured redesign of a finance function’s close-to-reporting process to meet the requirements of IFRS 18 (Presentation and Disclosure in Financial Statements, effective January 2027) — covering the income statement restructuring into five mandatory categories, the design of a formal Management Performance Measure disclosure process, and the comparative period restatement — as a business process change that must precede, not follow, any EPM or reporting system reconfiguration.
IFRS 18 is primarily discussed in accounting terms — which accounts move into which mandatory category, which non-GAAP metrics become subject to formal MPM disclosure, how the comparative period is restated. These are genuine and important accounting questions. But they are also process questions: the finance team needs to agree which accounts fall into each mandatory category before the EPM chart of accounts can be restructured, design the MPM identification and disclosure workflow before the reporting template can be reconfigured, and determine the comparative period restatement approach before the EPM system can be set up to produce parallel presentations.
For GCC and Egyptian enterprises, IFRS 18 process redesign has an additional dimension: the Arabic-language management reporting that most large enterprises produce alongside English-language statutory reporting needs to reflect the IFRS 18 presentation changes in both languages simultaneously, which requires the redesign to be conducted with Arabic-language reporting requirements in scope from the start. Finance functions that treat IFRS 18 as an accounting task and address the process implications as a secondary consideration consistently discover the process gaps at the first close under the new standard.
How Loop Wise Solutions delivers IFRS 18 process redesign
We lead IFRS 18 process redesign for GCC and Egyptian enterprises — covering income statement restructuring, MPM disclosure design, comparative restatement, and bilingual reporting alignment, before EPM system reconfiguration begins. Learn more about our Business and Technical Consultancy services.
Answers before you ask.
Redesigning the close-to-reporting process to meet IFRS 18 (Presentation and Disclosure in Financial Statements, effective January 2027) — including restructuring the income statement into the standard's mandatory categories, designing a formal Management Performance Measure disclosure process, and preparing the comparative figures the transition requires. It adapts the reporting process to the new presentation rules.
It restructures the income statement into defined mandatory categories, changing how income and expenses are presented and subtotalled. This alters the format organisations report in, so the close-to-reporting process, systems, and disclosures must be adapted to produce statements in the new structure. It is a presentation and disclosure change rather than a change to recognition or measurement.
IFRS 18 requires companies that use management-defined performance measures to disclose them formally, with reconciliation and explanation, bringing these previously informal metrics into the audited financial statements under defined rules. Designing a process to identify, disclose, and reconcile these measures is part of the redesign, since it is a new, structured disclosure obligation.
Because meeting the standard requires changes to processes, systems, and disclosures, plus preparing comparative figures for the prior period, which takes time to design and implement. Leaving it late risks a rushed, error-prone transition. Starting the redesign ahead of the January 2027 effective date allows the changes to be built and tested in good order rather than under deadline pressure.