Your Claude. Your IFRS 18 Skill.
How will IFRS 18 affect your company’s operating profit and operating cash flow? Can you keep using the same EBITDA definition and management targets?
The IFRS 18 Impact Diagnostic is a Claude skill that starts with a company name. It uses public disclosures to estimate the effects of adoption and identify the questions and decisions that need attention.
No internal data is needed to begin. Companies can use it to prepare for implementation, while consultants can use it to scope a client’s potential exposure.
IFRS 18 applies to annual reporting periods beginning on or after 1 January 2027. For December year-end companies adopting in 2027, the comparative year is already under way. Understanding the likely impact is a practical starting point for planning the work ahead.
Start with a company name
Add the skill to Claude and enter the company you want to assess.
It reads the public documents it can access and produces a report you can open on a phone or desktop. You can request it in your preferred language.
The report covers:
Operating profit: an indicative remap of income and expenses into operating, investing and financing, with estimates of the required subtotals.
Operating cash flow: a bridge showing the potential effects of changes to interest and dividend classifications.
Performance measures: an assessment of whether EBITDA and other measures qualify as management-defined performance measures (MPMs).
Management implications: connections to KPIs, medium-term targets, executive remuneration and covenants.
Implementation decisions: questions to confirm internally and issues to discuss with the auditor.
Where public information is insufficient, findings are marked provisional, with the information needed to confirm them. Upload additional documents and ask Claude to update the assessment.
The business stays the same. The reported measures can change.
View the sample report:
https://ifrs-labo.com/ifrs-18-impact-diagnostic-sample
The sample uses a fictional company, Halden Components Group, and invented figures to illustrate the output.
Halden currently includes its share of a joint venture’s profit in reported EBIT. Moving that amount to investing reduces its IFRS 18 operating profit. Changes to interest and dividend cash flow classifications increase its operating cash flow.
Measure | Current basis | Illustrative new basis |
|---|---|---|
Reported EBIT / IFRS 18 operating profit | €875m | €785m |
Operating cash flow | €820m | €865m |
Adjusted EBIT margin, if redefined to exclude the JV | 19.5% | 17.6% |
Cash conversion, if both operating CF and EBITDA follow the new basis | 73.5% | 84.4% |
The underlying business, net profit and total cash flows have not changed. Yet the measures used to explain and evaluate performance can move substantially.
The report shows the calculations, assumptions and decisions behind those changes.
Informed by research into 26 cases
The tool reflects the knowledge gained while building our IFRS 18 Early Adoption Tracker, which now covers 26 early-adoption and transition cases across multiple jurisdictions.
That work involved reading company disclosures, tracing reconciliation calculations and investigating why similarly named measures received different treatment.
Carlsberg, for example, moved certain FX gains and losses and bank fees into administrative expenses. Air France-KLM classified FX on aircraft return obligations in operating and FX on lease liabilities in financing. Noritsu Koki disclosed FX effects by their operating, investing and financing source.
EBITDA also requires more than a label check. Some companies identify it as an MPM; others use a measure corresponding to a specified IFRS 18 subtotal.
The diagnostic incorporates what we learned through that research: which documents to inspect, which calculations to test, where judgement matters, and what remains unconfirmed.
It uses those examples alongside the Standard’s requirements to assess the target company’s own transactions, activities and performance measures.
Expert knowledge, available in your own Claude
IFRS-LABO’s founder is a Japanese CPA with an ICAEW IFRS Certificate and 20 years of experience across Big 4 audit, group consolidation software and consolidated accounting products.
The skill turns that experience, together with insights from early-adoption research, into a repeatable diagnostic workflow.
Its output is an impact estimate and an assessment of implementation issues, not an accounting opinion. Final judgements on main business activities, FX classification and MPMs remain with the company and its auditor.
The report provides concrete material for planning the response and starting those discussions.
Get the IFRS 18 Impact Diagnostic
Add the skill to Claude once, then enter a company name to begin. Setup instructions and usage requirements are included on the product page.
Get the skill on Gumroad: https://ifrslabo.gumroad.com/l/ifrs18-impact-diagnostic
Questions and support: contact@ifrs-labo.com.