Getting Ready for IFRS 18? CMA Guidance and What It Means for You

The International Accounting Standards Board (IASB) has issued IFRS 18 Presentation and Disclosure in Financial Statements standard which replaces IAS 1 Presentation of Financial Statements. IFRS 18 is effective from 1 January 2027, with early application permitted.

IFRS 18 sets the stage for greater consistency, comparability, and transparency in financial performance reporting.

Many companies will see significant changes in their income statement with the impact varying depending on current presentation practice under IFRS® Accounting Standards.

Published on 8 June 2026, the Capital Markets Authority (“CMA”)’s circular No 92026 - Preparation for the Implementation of the Requirements of International Financial Reporting Standard No. 18 (IFRS 18) outlines specific regulatory expectations regarding IFRS 18 gap assessments and the development of implementation plans for entities operating under the CMA’s jurisdiction.

The circular categorically emphasizes that the new standard is designed to:

Enhance transparency and quality of financial disclosures
Improve comparability across companies and
Provide better insights into financial performance for investors

Are you ready for IFRS18?

Download our CMA Guidance and know what it means for you.

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Who will be impacted?

The circular applies to entities required to report to the Capital Markets Authority (CMA), including listed companies, Licensed persons, and Collective investment scheme managers

In practice KPMG believe that IFRS 18 may have broader operational impact on organizations have with complex group structures or multiple business activities, companies with systems that currently do not capture required data, and organizations with customized reporting structures.

What does CMA require?

The CMA expects organizations to start preparing early and take key actions, including:

Conduct a gap analysis to assess financial statement and accounting policy impacts
Prepare for compliance ahead of the effective date (1 Jan 2027)
Upgrade internal systems and chart of accounts and related systems that might be impacted.
Strengthen capacity and training of finance & relevant teams
Retrospective application of the comparative figures, requiring early readiness

How can companies prepare?

Assess Impact and Gaps
- What are the entities main business activities?
- Re-alignment of the income and expenses under each category
- whether the current level of aggregation and disaggregation is appropriate
Upgrade systems and processes
- Update chart of accounts, transaction systems, and consolidation processes
- Introduce new data collection points for disclosures
Align reporting and performance measures
- Review management performance measures (MPMs)
- Assess implications for bonuses, covenants, and investor communication
Build capabilities

Train finance teams and prepare for new judgments and classifications under IFRS 18
Plan the transition roadmap

Develop a phased implementation plan covering impact, redesign, and system updates

How KPMG in Kuwait Can Help

Impact assessment & gap analysis

Identify key differences and define transition priorities
Financial statement redesign

Align reporting formats, disclosures, and MPMs with IFRS 18 requirements
Systems & chart of accounts alignment

Review and restructure COA and reporting systems
Workshops & capability building

Tailored training sessions and practical implementation guidance
End-to-end implementation support

From planning to execution, leveraging global experience and local expertise delivering practical, business-focused outcome

Ready for IFRS 18? Let’s talk.

KPMG brings industry insight and a structured approach to support organizations in preparing for IFRS 18 and addressing evolving reporting requirements with confidence.

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