IFRS 18 Implementation Masterclass for Banks & Financial Institutions: Categories, Subtotals & MPMs

No. Participants should already know their institution’s income statement and the basics of IFRS 18: the five categories, the two new subtotals and the idea of a management-defined performance measure. The masterclass works the implementation: the bank-specific classification judgements, MPM identification and the note that discloses them, the consequential changes to cash flow, earnings per share and interim reporting, chart-of-accounts tagging, restatement and the governance that signs it off.

A corporate reports interest expense in the financing category and investment returns in the investing category. A bank whose main business is providing financing to customers and investing in assets reports both inside operating profit, so net interest income remains the core of its performance. The masterclass works that assessment entity by entity, including Islamic subsidiaries and finance companies, and the treasury, derivative and foreign exchange items where the answer is not obvious.

They are subtotals of income and expenses that an institution uses in public communications outside its financial statements — such as underlying profit or pre-provision profit — to give management’s view of performance. Under IFRS 18 each one must be disclosed in a single note with its definition, a reconciliation to the nearest IFRS subtotal and the tax and non-controlling-interest effects, which brings it inside the audited accounts.

IFRS 18 applies to annual periods beginning on or after 1 January 2027, with earlier application permitted. Because it applies retrospectively, a bank with a calendar year end must present 2026 comparatives in the new structure, and its first 2027 interim report already carries the new subtotals, MPM disclosure and restated prior-period figures.

Islamic banks and windows that report under IFRS apply IFRS 18 in full, and the programme works financing income, profit distributed to investment account holders and sukuk through the categories. Institutions that report only under AAOIFI financial accounting standards follow AAOIFI’s presentation rules instead; the MPM, aggregation and governance material still applies, the category mapping does not. Central banks that report under IFRS apply IFRS 18 to their own statements and will review it in the statements of the banks they supervise.

A sample financial group with a conventional bank, an Islamic subsidiary and a finance company. Participants decide the main-business-activity assessment for each entity, re-map the income statement into the IFRS 18 categories and subtotals, draft the expenses-by-nature disclosure, extract the MPMs from a sample investor presentation, draft the MPM note and its reconciliations, restate the comparative period and prepare the audit committee briefing that approves the result.

Yes. An in-house edition can be worked on your own income statement, investor presentation and chart of accounts, and every BIZENIUS programme is delivered in English and French. Sessions follow a rolling calendar with dates confirmed on request; fees are provided on enquiry.