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IFRS & US-GAAP Conversion

It is usually a major challenge for companies to convert their accounting to International Financial Reporting Standards (IFRS) or US-GAAP. A change in the rules and regulations has an impact on the entire organization. In order to carry out the process successfully and efficiently, the conversion should not be underestimated. In addition to subject-specific topics, it is also important to consider and integrate the necessary framework conditions such as processes, IT and employees accordingly.           

There can be many different reasons for implementing IFRS. Access to the international capital market or sale to a listed company can, for example, justify the need for an IFRS or US-GAAP conversion.

Our Support for IFRS Conversions

One of FAS AG's core competencies is advising capital market-oriented companies on reporting and management-related issues. In this context, FAS AG has already carried out numerous IFRS or US-GAAP implementations – in part also within the scope of IPOs and M&A transactions – for companies in the most diverse sectors and of very different sizes. FAS has many years of experience in IFRS conversions and the implementation of IFRS/US-GAAP accounting. We can compensate for our customers’ lack of internal knowledge and limited capacities with extensive know-how in the area of IFRS/US GAAP. In addition, we offer fast and efficient support thanks to a mentality that focuses on the goals and implementation while pursuing the work pragmatically with a hands-on approach.

The FAS Conversion Tool or an existing ERP system lets FAS AG specialists achieve a system-supported transition. The proven toolset from various IFRS and US-GAAP conversion projects, including our tool solution, is made available to FAS AG clients free of charge as part of the conversion.

Process of an IFRS or US-GAAP Conversion 

In general, the process of an IFRS or US-GAAP conversion project depends on your specific requirements and needs, so that the exact steps are individually tailored to your company.

The following steps, for example, are carried out as part of the conversion of accounting to IFRS or US GAAP:

  • IFRS/US-GAAP Assessment

The first step in a conversion to IFRS/US-GAAP is often an assessment. The primary goal here is to develop a consistent and reliable timetable for the conversion and its IT-technical mapping. Identification of expected conversion effects is also part of an IFRS/US GAAP assessment.

  • Optimization of Group Accounting

This is followed by the optimization of the Group accounting and the analysis of existing IT systems, which includes the implementation of new software for the Group accounting. Furthermore, if desired, it is possible to design and roll out the IT-technical implementation of parallel accounting in accordance with IFRS/US-GAAP.

  • Conversion to IFRS

Building on this, the third step is the actual conversion to IFRS/US-GAAP with the designing of the future accounting on the basis of accounting manuals, reporting packages, training and the system-side conversion. Furthermore, it is necessary to prepare the reconciliation entries for IFRS/US GAAP as well as the disclosures in the Notes to the financial statements and the consolidated IFRS/US GAAP financial statements.

 

In addition to supporting the preparation of the complete IFRS/US GAAP consolidated financial statements, the monitoring of the preparation process for the financial statements is also part of the range of services provided by FAS AG. The focus here is on the identification of weak points and the implementation of measures for process improvement.

If you are interested or have any questions, please contact us.

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 Ulrich Sommer Partner