IFRS 18 changes how your income statement is presented, and most finance teams are not yet sure what moves where.
IFRS 18 Navigator answers your specific question with a citation, or reads your own statements and shows you the reclassification. It is built for the people who have to defend the numbers, so every answer names the source it came from.
An animated illustration of the reclassification. The same figures and the full detail are in the exhibit that follows.
The work is real, and the tooling is not
IFRS 18 introduces three mandatory categories in the statement of profit or loss, a required operating profit subtotal, and disclosure rules for management performance measures. Thus every line item has to be classified. Most are settled by the standard, and the ones that are not, together with the assessment of your main business activity, are the ones that have to be defensible. Moreover, the options for getting that decision right are a paid standards database, a Big Four manual that is not about your numbers, or a general chatbot that cannot tell you where its answer came from.
The categories are not obvious
Interest, dividends received, and the results of associates all sit differently depending on your main business activities. The standard turns on facts that a generic summary does not know about you.
Management performance measures now carry disclosure
A subtotal you publish outside IFRS may become an MPM, with a required reconciliation and a statement of why it is useful. Finding which of your measures qualify is a review, not a lookup.
Nobody accepts an unsourced answer
An answer you cannot trace is an answer you cannot put in a paper to the audit committee.
How it works
- 01
Ask in plain language
Type the question the way you would ask a colleague. The answer comes back structured as impact, requirement, and what to check, with the sources listed beside it.
- 02
Or attach your own statements
Add a PDF of your annual report, or an Excel trial balance. Spreadsheets are read as tables, not as pictures, so the figures stay figures.
- 03
See the reclassification
For a statement of profit or loss, the reclassification that would take an afternoon in Excel is laid out in under a minute: every line re-bucketed into Operating, Investing and Financing, with the new operating profit subtotal in place and the judgement calls flagged.
Watch a statement move
The work IFRS 18 creates is not the arithmetic, it is deciding which line belongs in which category and then re-presenting the statement around three new subtotals. Below is that decision made on an illustrative statement. Every line holds its figure and moves to where the standard puts it, and the operating profit subtotal appears once they have landed.
An animated illustration of the reclassification. The same figures and the full detail are in the exhibit that follows.
The Reclassification View
Current presentation on the left, IFRS 18 presentation on the right, the same figures in both. Lines that moved are marked. Lines that need a management decision are marked differently, because the standard does not decide them for you.
Reclassification View
£ million
Current presentation
| Line item | Amount |
|---|---|
| Revenue | 4,820 |
| Cost of sales | (2,914) |
| Distribution costs | (462) |
| Administrative expenses | (538) |
| Restructuring charge | (74) |
| Gain on disposal of property | 31 |
| Share of profit of associates | 42 |
| Dividend income from equity investments | 18 |
| Interest expense on borrowings | (148) |
| Interest expense on lease liabilities | (34) |
| Interest income on cash deposits | 26 |
| Net pension finance cost | (11) |
| Income tax expense | (382) |
IFRS 18 presentation
| Line item | Amount | Change |
|---|---|---|
| Operating | ||
| Revenue | 4,820 | |
| Cost of sales | (2,914) | |
| Distribution costs | (462) | |
| Administrative expenses | (538) | |
| Restructuring chargeMoved | (74) | |
| Gain on disposal of propertyMoved | 31 | |
| Operating profitNew subtotal | 863 | |
| Investing | ||
| Share of profit of associatesMoved | 42 | |
| Dividend income from equity investmentsMoved | 18 | |
| Interest income on cash depositsMoved | 26 | |
| Profit before financing and income taxNew subtotal | 949 | |
| Financing | ||
| Interest expense on borrowings | (148) | |
| Interest expense on lease liabilities | (34) | |
| Net pension finance cost | (11) | |
| Profit before income tax | 756 | |
| Income tax | ||
| Income tax expense | (382) | |
| Profit for the period | 374 | |
Requires management judgement
0Possible management performance measures
Adjusted operating profit before restructuring937Reconciliation required
EBITDA1,284Reconciliation required
What this reads assumed
What it does not do
It does not sign your accounts and it does not replace your auditor. It will not tell you that a judgement call has one right answer when the standard leaves it to management, and where its own sources are thin it says so rather than guessing. Lastly, it does not reproduce the text of IFRS 18 itself; the knowledge base is our own written guidance, with references you can look up in your own copy of the standard.
Pricing
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Launch offer, 75% off$8.99Standard price $36
- Unlimited questions, within fair use
- Saved and searchable history
- Financial statement analysis and the Reclassification View
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Talk to us before you commit to an approach
Most teams reach the same two questions: which of our lines actually move, and what do we tell the auditor about the ones the standard leaves to us. Leave your details and we will arrange a working session on your own statements. We do not sell a licence on that call.
Frequently asked questions
- Where do the answers come from?
- A knowledge base we write and maintain ourselves, covering IFRS 18 presentation, the three categories, the operating profit subtotal, management performance measures, aggregation and disaggregation, and the transition requirements. Each entry carries a reference to the paragraph of the standard it relates to so you can check it in your own copy.
- What happens to the statements I upload?
- They are encrypted at rest, readable only by your account, and you can delete any file from the conversation it sits in. Uploaded figures are masked in our analytics and session-replay tools, so they are never captured there.
- Can my team share a workspace?
- Yes. Invite colleagues into a shared workspace and they see the workspace conversations. Billing stays with the account that owns the workspace.
- Is this only relevant to IFRS reporters?
- IFRS 18 applies to entities reporting under IFRS Accounting Standards for annual periods beginning on or after 1 January 2027. If you report under a different framework, the categories discussed here will not map onto your statements.