BC414 The IASB decided to make IFRS 18 effective for annual reporting periods beginning on or after 1 January 2027 and to permit earlier application. In determining the effective date, the IASB considered feedback from stakeholders on the time they would need to implement the requirements, including for jurisdictional authorities to incorporate the requirements into their legal systems. The IASB also considered feedback from users of financial statements regarding the need to make the information required by IFRS 18 available as soon as possible.

BC415 IFRS 18 will result in changes to presentation and disclosure throughout the financial statements, with the greatest effect on the statement of profit or loss. Entities are likely to require changes to data collection processes and IT systems, and discussions with internal and external stakeholders, including lenders, auditors and regulators. For example, some stakeholders said:

(a) changes would be required to remuneration policies and debt covenants linked to metrics in the statement of profit or loss and it would be necessary to negotiate and approve those changes with relevant stakeholders; and

(b) the disclosures for management-defined performance measures would require discussion between preparers, auditors and regulators because alternative performance measures and non-GAAP measures are often not subject to audit.