AERA Platform / IFRS Compliance Suite
Effective 1 January 2027 — Replaces IAS 1

IFRS 18 Presentation & Disclosure

The biggest change to financial statement presentation in 20 years. IFRS 18 replaces IAS 1 with a new P&L structure — five income/expense categories, two mandatory subtotals (operating profit and profit before financing & tax), management-defined performance measures disclosure, and enhanced aggregation and disaggregation rules. AERA helps you prepare now, restate comparatives, and comply from day one.

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A IFRS 18 — New P&L Structure IFRS 18 vs IAS 1 IFRS 18 — Statement of Profit or Loss OPERATING NEW category Revenue83,200 Cost of sales(49,900) Selling & distribution(6,200) Administrative expenses(5,400) Research & development(3,200) Other operating income800 Operating profit 19,300 MANDATORY INVESTING NEW category Share of profit — associates1,200 Dividend income300 Fair value gains — investments600 Profit before financing & income tax 21,400 MANDATORY FINANCING NEW category Interest expense(1,400) FX gains/(losses)(200) Income tax expense(6,800) What changes: IAS 1 → IFRS 18 New: 5 categories for all income & expenses Operating · Investing · Financing · Tax · Discontinued New: 2 mandatory subtotals Operating profit + Profit before financing & tax New: MPM disclosure in notes (audited) Adjusted EBITDA, adjusted operating profit, etc. New: Enhanced aggregation/disaggregation guidance Clearer rules for line items and note grouping Unchanged: Net profit · OCI · Balance Sheet · Cash Flow (minor changes) Management-defined performance measures Non-GAAP measures used in public communications — now disclosed in audited notes Adjusted EBITDA € 20,100K = Operating profit (€ 19,300) + D&A add-back (€ 4,200) − Restructuring costs (€ 3,400) Adjusted operating profit € 22,700K = Operating profit (€ 19,300) + One-off restructuring (€ 3,400) Disclosure requirements per IFRS 18: Definition · Reconciliation to IFRS subtotal · Reason for use · Tax & NCI impact · Comparative · Audited
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Key features
Prepare for 2027 — start now, comply on time
IFRS 18 requires retrospective restatement of comparatives. AERA helps you reclassify, restructure, and disclose — while maintaining your current IAS 1 reporting in parallel during transition.
P&L structure

Reclassify every income and expense into five categories

IFRS 18 requires all items in the P&L to be classified into one of five categories: Operating, Investing, Financing, Income Tax, and Discontinued Operations. AERA maps your existing chart of accounts to the new categories, identifies items that need reclassification (e.g., FX gains from operating to financing, associate income from operating to investing), and generates the new structured P&L with both mandatory subtotals.

  • Automated mapping: existing CoA → IFRS 18 categories
  • Reclassification engine for items that change category
  • Dual-format output: cost-of-sales and nature-of-expense
  • Parallel IAS 1 and IFRS 18 reporting during transition
Reclassification impact — IAS 1 → IFRS 18 Items reclassified from Operating (IAS 1) to other categories (IFRS 18) Share of profit of associates Operating → Investing € 1,200K Dividend income from investments Operating → Investing € 300K Foreign exchange gains/(losses) Operating → Financing (€ 200K) Interest income on cash deposits Operating → Financing € 180K Impact on Operating Profit (new IFRS 18 subtotal) IAS 1 operating result (no standard definition): € 20,780K IFRS 18 operating profit (standardized): € 19,300K Difference: -€ 1,480K (items reclassified to Investing & Financing)
MPM disclosure

Management-defined performance measures — now audited

If you use adjusted EBITDA, adjusted operating profit, or any other non-GAAP measure in investor presentations, press releases, or analyst calls — IFRS 18 requires you to disclose it in a dedicated note, with a reconciliation to the nearest IFRS subtotal, and it's subject to audit. AERA identifies your MPMs, builds the reconciliation, and generates the note automatically.

  • Automatic detection of non-GAAP measures in public communications
  • Reconciliation to nearest IFRS 18 subtotal (operating profit or PBT)
  • Tax and NCI impact disclosure per MPM adjustment
  • Comparative period restatement for each MPM
MPM disclosure note — Adjusted EBITDA Audited note € thousands FY 2027 FY 2026 Operating profit (IFRS 18) 19,300 16,200 + Depreciation & amortization 4,200 3,800 + Restructuring costs (one-off) 3,400 — − Gain on asset disposal (800) (600) − Share-based payment expense (1,200) (900) Adjusted EBITDA (MPM) 24,900 18,500 Tax impact of adjustments: € 1,680K · NCI impact: € 0 · Adjusted EBITDA margin: 29.9% Reason for use (IFRS 18 required disclosure): Management uses Adjusted EBITDA to assess recurring operational performance excluding non-cash and non-recurring items.
Transition

IAS 1 to IFRS 18 transition with comparative restatement

IFRS 18 must be applied retrospectively with restated comparatives. AERA provides a structured transition workflow: map your existing P&L to the new categories, generate the restated comparative period, produce the mandatory reconciliation between previously reported and restated amounts, and run parallel reporting until go-live.

  • Gap analysis: current P&L structure vs IFRS 18 requirements
  • Mapping tool: existing accounts → 5 new categories
  • Comparative restatement with automatic reconciliation
  • Parallel IAS 1 / IFRS 18 reporting during transition year
Transition timeline — readiness tracker ✓ Phase 1 — Impact assessment Identify reclassifications, MPMs, aggregation changes · 4-6 weeks Complete ✓ Phase 2 — Account mapping Map chart of accounts to 5 IFRS 18 categories · Configure classification rules Complete 3 Phase 3 — Comparative restatement Restate FY 2026 under IFRS 18 structure · Generate reconciliation disclosure In progress 4 Phase 4 — MPM identification & documentation Identify all non-GAAP measures, build reconciliations, document rationale 5 Phase 5 — Go-live (1 Jan 2027) Switch to IFRS 18 P&L structure · Publish restated comparatives · MPM note live 40% complete · Target: Q4 2026 for parallel run
Product walkthrough
See it in action
A walkthrough of the IFRS 18 module — from P&L restructuring through MPM disclosure to comparative restatement and transition management.
Video coming soon
5
P&L categories
2
Mandatory subtotals
MPM
Audited disclosure
2027
Effective date
Ready to prepare for IFRS 18?

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