Implementing under IFRS implies having experience in making estimates and the ability to adapt to the continuous updating of regulations.
The International Financial Reporting Standards (IFRS) are a set of standards issued by the IASB (International Accounting Standards Board) with the aim of providing a homogenous regulatory framework commonly used throughout the world.
Although many countries have their own accounting regulatory framework, it is common for companies within multinational groups to use IFRS to ensure the reports of each of the subsidiaries are made under the same criteria and the same valuation standards, so that it is easier to compile grouped financial information.
The main inconvenience for this type of companies is usually the conversion of a national or local accounting framework into an international framework following IFRS at each closing date. Despite the existence of many similarities, there are also numerous differences between the Spanish General Accounting Plan and IFRS; therefore, extensive experience in this area is required for such conversion to be done properly, and within a reasonable period of time from the closing date.
On the other hand, IFRS (International Financial Reporting Standards) are continually updated, either through interpretations emanating from the IFRIC (International Financial Reporting Interpretation Committee) or through the issuance of revised standards, or even new standards, that completely replace those previously in force. All this entails a continuous adaptation of the regulations, so they are adjusted to the reality of each company.
Given our experience in supporting multinational groups, we have wide knowledge in the implementation of IFRS in companies that use their own accounting system, and that must make recurring conversions in the reports they issue for the group management. Likewise, we collaborate in the implementation of new IFRS that come into force, performing the necessary functions. Mainly, we help companies in the following tasks:
- Impact evaluation.
- Recalculation of the necessary estimates.
- Assistance in the valuation of the associated assets and liabilities.
- Evaluation of the impact in previous exercises, should it be required by regulations.
- Analysis of the information that must be obtained in order to properly include it in the converted financial statements.