Following the transition in 2005 of the vast majority of EU listed companies to IFRS, the US, Canada and other regions are now making many other countries are now progressing towards the change. The good news: investors will be able to understand and compare financial statements from companies around the world. Result: lower cost capital more efficiently allocated. The not-so-good news: it can be a challenge getting through the IFRS conversion process and initial reporting period, as the experience of European companies has shown. Conversion to IFRS is much more than a technical accounting issue. IFRS may significantly affect any number of a company’s day-to-day operations or even impact the reported profitability of the business itself. Inventory, R&D and fixed assets accounting and bookkeeping may all be affected by a conversion to IFRS, not to mention, pensions, stock-based compensation, and derivatives.
PwC has a proven track record in helping companies successfully complete the transition to new accounting standards. Reflecting the complexity of the task at hand, we have a range of specialists to assist your company's conversion to IFRS, including: technical accounting, treasury, tax, human resource, M&A valuations and project management specialists. Our Transition IFRS methodology has been applied to more than 200 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.