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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

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Posted on by LW-12110942-0

Hi,

We are facing an issue were the new IFRS 18 standard requires you to categories your FX results based on categories of operational, investing and financing. This is required from 2027 however you then need to be able to provide comparative results with 2026.

Is anyone else facing the same issue? Is there a way to solve this in BC cloud?

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Dynamics 365 Business Central

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Khushbu Rajvi. 20,161 Super User 2025 Season 2 on at

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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

I am not sure if this helps or not but please check this: https://download.microsoft.com/download/6/c/a/6ca9315b-3e3a-4103-a390-12f93506491a/MicrosoftDynamics365forOperationsSupportforIFRS.pdf

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Teagen Boll 637 on at

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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

BC in its current state won't manage that by default. You would need to use external reporting tools or pull the data out of the system and build cash flow statements to have those categories.

You could potentially use dimensions to manage this and have a Cash Flow dimension as mandatory on the FX accounts. But you would have to make sure all entries with FX are also using that Cash Flow dimension.

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YUN ZHU 95,079 Super User 2025 Season 2 on at

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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

Hi, Some partners have provided IFRS 16 solutions for BC, and they may also provide IFRS 18 solutions in the future. You can contact them through the link below.

https://marketplace.microsoft.com/en-us/marketplace/apps?search=IFRS18&page=1

Thanks

ZHU

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OussamaSabbouh 4,300 on at

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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

Hello,

BC doesn’t support IFRS 18 automatically.
To meet the new FX classification (operating / investing / financing), companies are currently solving it with custom G/L accounts, dimensions, or a small extension, because no native feature exists yet.

Regards,
Oussama Sabbouh

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Sumit Singh 9,566 on at

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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

Hi,
Current BC behavior: Business Central (BC) posts FX adjustments to realized/unrealized gain/loss accounts without categorization.
As of now, BC does not have native IFRS 18 categorization for FX results. It only supports:

Adjust Exchange Rates batch job for realized/unrealized gains/losses.

Posting to predefined G/L accounts for FX differences.

Customisation is required or as suggested by YUN, you can search some add-ons over APP store.

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Pallavi Phade 3,569 on at

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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

Namaste @LW-12110942-0

BCE does not support the requested query . There is no category wise accounting . You need to go for customization or third party app

I 'm not sure solution is developed or not as IFRS 18 was issued in April 2024 and becomes effective in 2027.

Regards

Pallavi Phade

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Mihail Chorev 10 on at

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IFRS 18 compliance, categories adjust exchange rate results on operational, investing and financing

Hey everyone,

I’m working on this IFRS 18 exchange difference split for D365 F&O, and I think I’m starting to get the idea, but I’m still a bit confused. From what I understand, under IFRS 18 we’re supposed to split foreign exchange gains and losses into categories like Operating, Financing, and maybe Investing, depending on what caused the FX movement.So I guess we need to create separate main accounts for each type? Like one set for realized and unrealized FX under Operating, another set under Financing, etc.?Then in D365 we’d use the G/L-> Currencies->Revaluation posting profiles to link customer/vendor groups or GL accounts to the right FX accounts? Does this sound right? Has anyone already set this up or tested it in D365? I'm trying to figure out what the “cleanest” setup but have some doubts and trying to understand the logic?

Thanks

BR,

Mihail

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