The experts at Ria Grant Thornton can help you illustrate new and different balance sheet values.
The transition to IFRS has involved and involves adopting a new cultural model in the preparation of financial statements, it is not a simple accounting exercise. It is a change that goes beyond the traditional boundaries of the company, involving the market, institutional investors, financial analysts, to whom new and different balance sheet values must be illustrated. This communication will require the preparation of reconciliation statements which highlight how the transition of the accounting basis determines different accounting results with repercussions on the main balance sheet indicators.
It involves modifying internal information and IT systems, which need to be adjusted to collect the information required by the new accounting standards of reference. It requires reviewing staff remuneration and incentive systems and financing agreements, to ensure consistency with new financial statements data, both past and expected. Choosing the timing correctly is essential; given the complexity of the transition process, it is advisable for the project to be planned in time.
The commitment required, in terms of human and financial resources, both internal and external to the company, must be carefully evaluated. It is essential during this process to have a trained partner who can efficiently organise the phases to be addressed and the ways to do so.
Ria Grant Thornton supports the client at every stage of the transition process:
- Identification of the information required for IFRS purposes, for each business sector;
- Choice of accounting policies, in light of the performance indicators relevant for each specific company;
- Integration and modification of IT, budget and internal reporting systems, for collecting information that is necessary for the preparation of IFRS financial statements;
- Development of a new group manual, for communicating the new IFRS financial statements requirements to the peripheral units;
- Development of basic and advanced training plans on IFRS, for each business sector, on CD and in the classroom, to ensure adequate training of personnel involved in the transition to IFRS;
- Assistance from specialists, tax experts, actuaries, lawyers, for resolving new and complex problems presented by the transition to IFRS;
- Consultancy on investor relationship management, aimed at maximising and externally communicating the value produced by the company.