IFRS Conversions 

We can help you understand how the changes in the standards affect your financial statements and assist you in making the complex accounting policy decisions required. We also believe that companies should view the change in accounting standards as far more than an accounting exercise. Our multi-disciplinary approach seeks to translate the accounting impacts into tangible actions to deliver the required changes to your company’s systems, processes, people and also to the wider business.  

Acces more information (Romanian) on IFRS implementation for Romanian listed entities.
 

   

IFRS Management - focus area	Questions to consider	Examples of assistance we could provide
Project plan	What does your high level conversion plan look like? Will it satisfy your stakeholders, for example your analysts and investors? Does it address the questions identified in each of the four other focus areas?	Project management of the conversion process  Secondment/resources
Resourcing	Do you have appropriate/ available internal resources?
Timescales	What are your key milestones and deliverables? Have you considered early adoption?
Accounting and Reporting - focus area	Questions to consider	Examples of assistance we could provide
Determine accounting and reporting topics	What are your key accounting and disclosure differences?	Initial impact assessment
Complexity of reported information	How can your company manage information complexity yet maintain clarity for the investing community?	Preparation of pro forma financial statements
Volatility in reported earnings	Are there choices that may mitigate volatility of reported earnings?	Assistance in minimizing P&L volatility
Taxation	What impact will changes have on your reported taxable profit? What impact will changes have on existing tax planning?	Assistance in calculating the initial tax impact assessment
Systems & Processes - focus area	Questions to consider	Examples of assistance we could provide
Financial reporting dependent on operational policy and procedure, e.g.,revenue recognition	What changes do you need to make to your business processes so that new accounting standards are business as usual?	Assesssment and implementation of system changes
Policies ‘embedded’ in existing accounting systems, e.g., amortization rates, hedge accounting	What systems or sub-systems may need amending for changes arising from conversion and for production of the financial statements? Is it possible to embed policies in your accounting or IT systems where this is not currently done to improve consistency of application?	Assistance with policy, control and procedural matters arising from potential changes to accounting.
		Support in identifying gaps in information systems
Data capture and conversion	Do you have the data needed to be able to produce financial statements and all relevant disclosures under EU-adopted IFRS?	Assistance with preparation of financial statements and related disclosures
People and change - focus area	Questions to consider	Examples of assistance we could provide
Internal communication	What needs to be communicated to your reporting entities,  employees and trading partners?	Ongoing or one-off training sessions
External communication	Who are the analysts, shareholders, external parties that track your company and industry? What valuation models do they use and what information will they need?	Secondment/Resources
Training	Are your finance teams ready for the change? What are their training requirements?
Business - focus area	Questions to consider	Examples of assistance we could provide
Performance-related remuneration	What are the appropriate performance targets, depending on how performance indicators change?	Review of internal management information, KPIs and forecasts Bank covenant review
All employees plans	What is the impact of the proposed accounting standards on existing plans and proposed new plans?
Internal management information	When is the most convenient time to change internal metrics, for example budgets, key performance indicators and forecasts? How many years' comparatives will you change to provide an appropriate track record?
Loan agreements and other contractual relationships	Do you have covenants which may need to be re-negociated to reflect changes in accounting standards? Will conversion affect interest cover ratios and other KPIs?