Welcome to the July 2026 edition of the Segun Awosanya & Co. (SAC) Newsletter.
IFRS 18: Is Your Business Ready for the Future of Financial Reporting?
The way businesses present their financial performance is changing. With IFRS 18 becoming effective for annual reporting periods beginning on 1 January 2027, Nigerian businesses need to start preparing for a new era of financial statement presentation, disclosure and transparency.
Replacing IAS 1 — Presentation of Financial Statements, IFRS 18 introduces a more structured approach to reporting income and expenses, including five mandatory categories and two required subtotals: Operating Profit and Profit before Financing and Income Tax.
For finance leaders, CFOs, audit committees and business owners, this is more than a reporting update. It is a transition that requires early planning, system readiness and a clear understanding of the new requirements.
IN THIS EDITION · TWO RATE CUTS. ONE N12 MILLION TRAP.
What Does IFRS 18 Mean for Your Business?
IFRS 18 introduces significant changes to how financial performance is presented and explained. Businesses will need to review their existing reporting practices, assess classification requirements and prepare for enhanced disclosures.
Key areas include:
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A new structure for profit or loss: Income and expenses must be classified into defined categories to improve consistency and comparability.
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Greater transparency in performance measures: Management Performance Measures (MPMs), including non-GAAP metrics such as Adjusted EBITDA, will require formal disclosures where applicable.
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Clearer financial statement disclosures: Vague line items such as “other expenses” will need closer attention as entities assess the new aggregation and disaggregation requirements.
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Updated systems and processes: Charts of accounts, ERP systems and financial reporting processes may need to be redesigned to support the new presentation format.
Why Preparation Must Start Now
The transition timeline makes early preparation essential. Because the 2026 comparative period must be restated under the new standard, businesses cannot afford to leave their transition planning until 2027.
Early action can help organisations identify reporting gaps, resolve classification questions, train finance teams and engage external auditors before the effective date.
Read the full July 2026 Tax & Rates Alert
How SAC Can Support Your Transition
Preparing for IFRS 18 requires more than understanding the new standard. It calls for a structured approach to implementation, supported by the right technical expertise and practical planning.
Segun Awosanya & Co. (SAC) offers support across key areas of the transition, including:
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IFRS 18 readiness assessments and gap analysis
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Financial statement redesign
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Management Performance Measures review
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Accounting policy updates
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Finance team training
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End-to-end implementation support
Our focus is to help organisations understand the changes, prepare their reporting processes and approach the transition with greater clarity and confidence.
