IFRS Readiness And Conversions

All listed companies in Sri Lanka are required to comply with International Financial Reporting Standards (IFRS) from 1 January 2011.

Challenges:

  • You need to understand the changes affecting financial hedging and instruments, pensions and tax as well as how the standards are likely to impact on your industry
  • 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 changes within the company
  • You are unsure of the additional data you are required to collect, whether your systems are able to capture it or if your controls are adequate
  • You want to assess the tax implications of moving to IFRS
  • You will communicate your first results under IFRS
  • You want to ensure that all decisions are the best for the business and that any wider business opportunities are considered as part of this exercise.

How we can help

PwC has a proven track record in helping companies successfully complete the transition to new accounting standards. Our Transition IFRS methodology, to assist with conversions, has been applied to many conversion projects in the last few years. This methodology, as well as getting the numbers right and guiding companies through operational problems, focuses on effective knowledge transfer to ensure lasting benefits.

Our conversion specialists bring technical, training, communications and change management expertise to the project - reflecting the complexity of the task at hand. While many of the issues are common across all businesses, some impact more on certain sectors so we'll make sure our industry specialists are involved. We have technical accounting, treasury, tax, human resource, M&A valuations and project management specialists to scope out and assist with your company's conversion to IFRS.

How we can support you

  • Assistance with determination of headline figures, calculations of key performance indicators (KPIs), remuneration schemes that are calculated from the new format financial information
  • Effective training strategy and coaching support for the IFRS project management team
  • Assurance from objective evaluation of project processes, controls and deliverables
  • Empowering tax managers to take control of the tax aspects of the conversion process and assess the tax merits of each option
  • Positioning yourself as the market leader with assurance that you are releasing the right information to the market in a timely manner
  • Maximise the business opportunities resulting from this mandatory change including streamlining of interdependent projects.

PwC can help you prepare for IFRS with the following services

  • Transition IFRS project management support
  • Technical and accounting advice, and support tools
  • Learning and change support
  • IAS 32, 39, IFRS 7 and financial instruments
  • Employee benefits and share compensation scheme
  • Business combinations - purchase price allocation
  • Valuation and impairment testing
  • Tax
  • Processes, data and systems.