Our approach

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TransitionIFRS Methodology

PwC’s TransitionIFRS Methodology is a robust and tested framework that has an inherent flexibility, enabling us to adapt it to work most effectively within your organization. This framework acts as a springboard from which you can launch and control your conversion project, accessing the support and guidance you need as the implementation progresses. Our IFRS conversion methodology is executed through PwC’s proprietary web-based portal. Used jointly by PwC and client team members, this tool is our project management and global communication tool for IFRS conversion projects.

Phases

Typically each IFRS transition project consists of three phases:

Phase 1

In Phase 1, the diagnostic stage, we carry out an initial impact analysis and plan the later phases.

Preliminary Study (“Diagnostic”)

  • Define requirement for financial information
  • Draft project timetable
  • Overall project organization
  • Estimate of financial and systems impact
  • Outline work plan
  • Estimate of required resources and costs

Phase 2

Phase 2 consists of the detailed steps necessary to prepare the first complete IFRS financial statements.These steps are typically grouped into project set-up, component evaluation and issues resolution, and financial statement preparation.

Project Set-up

  • Confirm roles and responsibilities
  • Set up project management office
  • Create detailed project plan
  • Set up and train project teams
  • Communicate project policies
  • Select champions

Component Evaluation and Issues Resolution

  • Prepare component evaluations
  • Impact analysis and decisions on accounting policies
  • Identify new data requirements
  • Identify additional data requirements
  • Identify and resolve accounting treatment issues

Financial Statement Preparation

  • Prepare IFRS GAAP adjustments
  • Post adjustments
  • Systems diagnosis
  • Identify and calculate important GAAP differences (including documentation and adjusting journal entry calculation/support)

Phase 3

In Phase 3, we take the information, issues and solutions gathered, and integrate them into your underlying financial systems and processes.

Integrate Change

  • Impact analysis on recurring business
  • Impact analysis on accounting/finance divisions
  • Design and document IFRS GAAP reporting procedure
  • Change plan by business unit
  • Systems design and development