International financial reporting standards, the biggest accounting change in a generation has arrived. Starting in 2005, all listed companies in EU member countries and in many other countries will make the switch to IFRS. The good news: investors will be able to understand and compare financial statements of companies from around the world.
Result: lower cost capital more efficiently allocated. The not-so-good news: it is a challenge getting through the IFRS conversion process and initial reporting period. Converting to IFRS is much more than a technical accounting issue. The IFRS may significantly affect any number of a company's day-to-day operations or even impact the reported profitability of the business.
If this is your situation
- You want to know the impact on reported performance measures and whether your profit is likely to be more volatile.
- You need to ensure you have enough people with the right skills to complete the transition and embed the necessary changes within the company.
- You are unsure of the additional data you are required to collect, whether your systems are able to capture that data, or if your controls are adequate.
- You need to understand the changes affecting financial hedging and instruments, pensions, and tax as well as how the standards are likely to impact your industry.
- You want to assess the tax implications of moving to IFRS.
- You want to optimize all decisions related to IFRS conversion and ensure any wider business opportunities are considered.
How PricewaterhouseCoopers can help you
PricewaterhouseCoopers has a proven track record in helping companies successfully complete the transition to new accounting standards. We have a range of professionals to assist your company's conversion to IFRS, also help you with technical accounting, treasury, tax, human resource, M&A valuations, and project management. (For audit clients subject to the provisions of the US Sarbanes-Oxley Act, non-audit services and tax services can be provided by the auditor as long as the services have been pre-approved by the audit committee.) Our Transition IFRS methodology has been applied to more than 200 conversion projects in the last few years. This methodology, along with getting the numbers right and guiding companies through operational problems, will focus on effective knowledge transfer to ensure lasting benefits.
- Objective evaluation of project processes, controls, and deliverables
- Transition IFRS project management tool
- Training and coaching support
- Advice on adapting processes, data, and systems for IFRS
- Technical accounting advice and support tools
- IAS 39 and financial instruments
- Employee benefits and share compensation programs
- Purchase price allocation related to business combinations
- Valuation and impairment testing
- Tax
