IFRS (US GAAP) Consulting
Our services, related to the International Financial Reporting Standards (IFRS):
Evaluation of a company accounting organisation
Development of the IFRS-based accounting policies
Development of the first (transformed) IFRS-based financial statements
Organisation of the IFRS-based accounting at a company or group
Upgrading the company information system to fit the IFRS-based accounting methods
Continuous preparation of the IFRS-based financial statements including the complex of notes
The IFRS implementation action plan for the company can be presented in the form of a sequential chain of steps, and the omission of any of them can make the project a failure. For better understanding of how the action plan works, those steps are presented below.
Step 1. Define the purpose of IFRS-based financial statements preparation and a realistic timeline for the transition
Step 2. Form the project team. As evidenced by the experience of European companies, an essential part of the problems with the first IFRS application was related to the fact that many managers could not fully estimate the complexity and cost of the transition to accounting based on the international standards, its impact on the work of different departments (financial, IT, legal services, treasury, HR, PR, etc.), as well as the importance of interaction with external users of reporting (investors, analysts, regulators, etc.)
Step 3. Estimate the level of knowledge of the project team members and the extent of involvement of external consultants and experts including those who will teach the company staff. As a result, determine the forecasted budget of the project and clarify the timing
Step 4. Develop the IFRS-demanded accounting policies and compare them with the current policies. Create a checklist of differences
Step 5. Perform inventory taking of company’s assets and liabilities, re-value them if it is necessary to comply with the IFRS requirements
Step 6. Examine the information disclosure requirements under IFRS in the notes to the financial statements, compile a list of data on the company that needs to be disclosed, and invite external experts to prepare these notes
Step 7. Establish communication among the project team members (develop the form of the information transfer, deadlines, the list of responsible persons, etc.) to segregate duties and responsibilities on the information preparation. Once again clarify the timing of the project
Step 8. Compile trial financial statements for one reporting period (by the transformation method), identify and evaluate all problematic issues, omissions and inaccuracies in the presentation of information, make decisions on these issues
Step 9. Compile the first full set of the company IFRS-based financial statements by the transformation method
Step 10. Make recommendations on how to automate the process of the preparation of the IFRS-based statements for the next reporting periods, define the realistic deadlines for the accounting information system modernisation
In the case of financial reporting in accordance with US GAAP, the action plan is the same.
The price of our IFRS-related services is defined only by the results of preliminary negotiations with the customer, taking into account the list of services, their complexity and the timing of the project.