As of 1 January 2027, significant changes to the IFRS framework will come into force, fundamentally reshaping how listed companies present their financial performance to the market.
These changes are not a technical accounting exercise. They have direct implications for:
- the portrayal of operating performance,
- comparability with peers and competitors,
- consistency of communication with investors and analysts,
- and the oversight responsibilities of the Board of Directors.
At a glance – what is changing:
- A more standardized and disciplined presentation of financial results is introduced.
- Operating Profit is clearly defined, reducing discretion in performance presentation.
- Management performance metrics (e.g. adjusted measures) are brought into a regulated transparency framework.
- Stronger alignment is required between financial information, risk disclosures, liquidity and ESG statements.
Why attention is required now:
Decisions on KPIs, reporting structure and external communication are taken at Board level well ahead of 2027. Delayed preparation increases the risk of:
- inconsistencies in the company’s performance narrative,
- challenging questions from the market,
- and increased scrutiny from auditors and regulators.
A focused and timely preparation enables Boards to:
- retain control over the financial performance narrative,
- enhance transparency and credibility,
- and turn a regulatory change into a strategic advantage.