IFRS 18 readiness | Bakertilly Saudi Arabia
The income statement is getting its first redesign in decades. Saudi Arabia is not waiting.
IFRS 18 replaces IAS 1 and changes how every Tadawul-listed company presents performance. The CMA has approved early adoption for 2026 — and impact-assessment disclosures are already required. Baker Tilly gets you ready before the market reads your numbers differently.
Four dates every CFO in the Kingdom should have circled
IASB issues IFRS 18
The biggest change to income-statement presentation since IAS 1.
Impact disclosures required
Listed companies must disclose preliminary IFRS 18 impact assessments in their financial statements.
Early adoption window
CMA-approved voluntary adoption — early movers must disclose it on Tadawul.
Mandatory application
IFRS 18 applies to all financial periods beginning on or after this date.
Three changes that will make your financials look — and read — different
IFRS 18 does not change how you measure profit. It changes how you present it — which is exactly what analysts, lenders and investors see first.
New income statement structure
Income and expenses are classified into five defined categories — operating, investing, financing, income taxes and discontinued operations — with two new mandatory subtotals: Operating profit and Profit before financing and income taxes.
MPMs move into the audited statements
Management-defined performance measures — adjusted EBITDA, underlying profit and similar — must now be disclosed, reconciled and explained in a single audited note. Your investor-deck metrics become auditable.
Stricter aggregation rules
New principles for grouping and labelling line items mean the end of large unexplained "other expenses" balances — and more granular, decision-useful notes.
See the same company, before and after IFRS 18
Toggle between today's IAS 1 presentation and the new IFRS 18 structure. Same profit. Very different story.
Illustrative income statement — FY2027
Statement of Profit or Loss
No defined "operating profit". Investing returns mixed into other income. Analysts rebuild your P&L their own way.
How ready are you, really?
Tick what your organization has already done. Be honest — the CMA will be.
A four-step path from IAS 1 to IFRS 18 — without the drama
Impact assessment
Gap analysis of your current statements, category mapping, and the CMA-required preliminary impact disclosure — board-ready.
Statement & MPM redesign
New income statement structure, subtotals, disaggregation policy and a defensible, reconciled MPM note.
Systems & process update
Chart-of-accounts changes, ERP and consolidation configuration, and closing-process updates so the new format runs itself.
Transition & training
Comparatives restatement, dry-run reporting, audit-committee briefings and hands-on training for your finance team.
The early-adoption window is open. The disclosure clock is already running.
Book a complimentary 45-minute IFRS 18 readiness session with our Audit & Assurance team — Riyadh, Jeddah or Khobar.