IFRS standards and accounting principles are under constant change. Not all of these changes will be significant to your business, but many will require careful consideration and well prepared application by entities in the transportation and logistics industry. It will be imperative for management to have a clear understanding of how upcoming accounting changes will impact many facets of the transportation and logistics business. This will include areas such as short to medium-term strategic plans for the business, current and future commercial activities, stakeholder communication, financial reporting processes and controls, operational structures, existing IT systems and processes and employee training and development.
IFRS presents challenges at all stages of the IFRS conversion lifecycle. Many challenges are unique to transportation and logistics or your country. Whether you are considering a conversion to IFRS, are committed to making the change, or are already an IFRS reporter, we can help you. PwC has many years of experience helping clients transition from local GAAP to IFRS and assists clients around the world to provide accurate and meaningful IFRS financial reports. Our IFRS specialists can guide you through all stages of the IFRS reporting lifecycle:
Conversion to IFRS: Toll Holdings & Pacific National
Toll Holdings, together with their rail venture Pacific National is now established as the largest transport and logistics provider in Australia and New Zealand. As a rapidly expanding corporation, the initial conversion and on-going compliance with the complex International Financial Reporting Standards (IFRS) provided a significant challenge which needed to be addressed. In order to facilitate the initial transition and on-going support in a manner which ensured appropriate ownership and decision making was retained in-house an innovative solution was sought.
In order to meet the critical objectives of the client, a secondment model was initially proposed and adopted to fulfill the roles of strategic project manager and trusted technical adviser. Throughout the course of the extended conversion process this provided Toll and Pacific National with direct access to the firm’s network of specialists and intellectual property in a cost effective manner. Following on from this, the knowledge of the business and relationships developed has enabled the client to efficiently deploy PwC teams across a range of critical task areas, most recently to provide the suite of cross border project management, taxation, valuations and accounting assistance on the combined $8 billion purchase price allocation for Patrick Corporation and SembCorp Logistics.