Romania

IFRS Conversions 

Are you concerned about how a change in reporting framework will affect your financial statements and your wider business?

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?

 

 

Contacts

Aura Giurcaneanu

Aura Giurcaneanu

Partner, Head of Audit and Assurance

+40 (744) 655 847

Angela Manolache

Angela Manolache

Advisory, Director

+40 (372) 377 800

Related links

For quick access to a range of accounting, auditing and financial reporting guidance and literature, please visit KPMG's Accounting Research Online.