Preparing your company to go public can be a daunting task. Let our resources evaluate your existing financial statement policies and align your entity with the appropriate IFRS, UK GAAP or US GAAP or other GAAP’s requirements. Depending on the location of your business, we provide our clients with ACCAs, ACAs, and CPAs to perform our comprehensive procedures and analysis to ensure your financial accounting practices are appropriate. Our deliverable includes a detailed checklist along with specific observations and recommendations that can be readily acted upon.
The impact in adopting International Financial Reporting Standards (IFRSs) goes beyond the choice of a uniform accounting language, designed to bring greater clarity to financial reporting, as well as, comparability and consistency on a global scale.
Required changes in transaction measurement and account disclosure means transitioning to IFRS will have an impact on your IT infrastructure service capabilities, the relevant financial reporting applications and the underlying business processes that support financial reporting. Moreover, the impact of IFRS on systems and processes will be as a result of information requirements not being easily accessible from existing systems without significant modifications being required; changes to accounting estimates and non-routine calculations, accounting structures changing because of new accounting policy adoption, and management reporting needs being impacted for consolidation and reporting disclosure changes.
To-date, organizations have relied on PIRON professionals to assist them in improving the design and operational effectiveness of their internal controls over financial reporting. Similarly, we view the transition to IFRS as an opportunity to make improvements along a number of related fronts:
- Financial accounting and reporting systems will evolve to where both internal (ie. senior and operational management) and external (Board of Directors and Investors) stakeholder information requirements can, and will, be met sufficiently;
- Training requirements for staff and management will need to be redefined, upon appreciating the skills and knowledge bases needed to generate and report new accounting information;
- Accounting policy choices will be made with a clearer understanding of the impact on key performance measurements and indicators, while ensuring alignment with industry peers and;
- Improved communication to relevant stakeholders should promote greater accountability and transparency
Our goal is simple– to enable your organization to adopt and communicate, with confidence and authority, all relevant changes and enhancements to systems, controls, processes and staff by way of a smooth transition to the new accounting standards.
PIRON professionals are available to assist management in a number of ways, including, but not limited to, the following:
- Applying an initial diagnostic in order to identify country GAAP/IFRS accounting differences, and thereby communicating key issues (via gap analysis) to management .
- Preparing new policies and procedures in order to satisfy a need for upgrading and achieving new skills at all levels
- Preparing note disclosures prior to conversion, as well as, first time interim and annual financial statements
- Assessing, measuring and communicating impacts to the business’s performance, by virtue of adoption of new standards, and the allowable choices within each
- Prescribing business process, control and system changes as necessary in order to successfully transition to new operating practices
- Identifying corporate governance changes resulting from IFRS adoption
Execution Plan for nearby adoption dates countries like Japan, Canada (2011), India, United States......
IFRS Conversion Timelines for country’s whose convergence date is in near future......
Mid 2008/2009 beginning- Organizations should disclose their plans, by end of fiscal 2008, for convergence and what anticipated effects will arise with the change to IFRS, on its financial statements
2009- Organizations will be required to disclose a more detailed convergence plan, including quantification of anticipated effects, by end of fiscal 2009, effectively marking the beginning of transition date to IFRS
Financial statements to be prepared under current, local GAAP
2010- Organizations are required to prepare 2010 comparative financial statements, compliant with IFRS, both quarterly, as well as for their annual report, in conjunction with 2011 financial information, filed in 2011
2011- Change over date effective January 1, 2011 for all publicly accountable enterprises
IFRS compliant statements need to be prepared for Quarter 1, 2011, including comparatives for 2010
