IFRS CONVERSION, PLANNING, SUPPORT & ADVISORY SERVICES
International Financial Reporting Standards (IFRS) is achieving power throughout the world as a single, logical accounting framework and is positioned to become the predominant GAAP in the near future. More than 100 countries have moved to, or base their local standards on IFRS.
The impact in adopting International Financial Reporting Standards (IFRS) goes besides the choice of a uniform accounting language, designed to bring enhance clarity to financial reporting, as well as, comparability and flexibility on a global scale.
Indian Accounting Standards have not yet kept pace with modification in IFRS and there are momentous differences between IFRS and I-GAAP. Recognizing the significance of having full concurrence with IFRS, the ICAI has decided to fully converge with IFRS issued by IASB. The Ministry of Corporate Affairs has declared its commitment to convergence to IFRS.
The time has finally come when India Inc. will merge to International Financial Reporting Standards. IFRS as they are more generally known is more than just a set of accounting standards. It is in a way entire business process and encompasses changes in all the working spectrum of the business.
The misinterpretation around IFRS is that it would strike only listed entities or ‘Large’ entities; while on the contrary, no business can remain untouched by this wave of substance over form and fair valuation. The proof of it is the recently issued IFRS for Small and Medium Sized Entities (SME) which offers a scaled-down, simpler and more cost-effective version. Sooner or later, India will concentrate with these too.
Appropriate changes in transaction measurement and account disclosure means transitioning to IFRS will have a strike on your IT infrastructure service potential, the relevant financial reporting applications and the underlying business practices that support financial reporting. Moreover, the impact of IFRS on systems and processes will be as a result of information requirements not being easily available from existing systems without significant modifications being required; changes to accounting estimates and non-routine calculations, accounting structures changes because of new accounting policy adoption, and management reporting needs being impacted for consolidation and reporting disclosure changes.
What VJM & Associates Offers
We have worked broadly under IFRS and our experience indicates that IFRS is more than just a technical accounting exercise and needs to be viewed and studied as an important business priority. The Profits, EBITDA, Dividend policy, Tax Planning will all change because of this transition and companies need to plan well in advance to ensure a smooth transition. While it is established that IFRS in India is a reality, it is also a reality that converging to IFRS is no mean business and we at VJM & Associates aim at assisting clients in an easy transition.
FULL CONVERSION:- We would take your existing I-GAAP financials and provide you with IFRS Financial Statement. This included IFRS Health Check up, IFRS Conversion services, IFRS Transaction Advisory.
CUSTOMISED IFRS DISCLOSURE CHECKLIST:- For good IFRS reporting, you need a overall checklist. We would gather basic important information from you, do a quick interpretation and provide you with suggested disclosure checklist that could act as a comprehensive tool in ensuring complete and concise accounting disclosures. If you have a good knowledgeable team OR if you are an audit firm and can handle entire IFRS conversion on your own, you should definitely have this checklist to ensure completeness.
VJM & Associates are available to assist management in a number of ways, including, but not limited to, the following:
MYTHOLOGY OF IFRS SERVICES: – VJM & Associates provides an entire mythology of IFRS services:
DIAGNOSTIC REVIEW – Analysis of policy and procedures difference between existing GAAP and IFRS. Applying an initial diagnostic in order to identify Indian /IFRS accounting differences and thereby publicizes key issues (via gap analysis) to management.
GAP ANALYSIS & CONVERSION PLANNING – Analysis of the gaps and determine procedures for bridging the gaps including specific actions which needs to be taken by the company. Preparing new policies and procedures in order to satisfy a need for promoting and achieving new skills at all levels.
CONVERSION OF FINANCIAL STATEMENTS INTO IFRS – Actual conversion of financial statements into IFRS compliant financial statements. Adapting note disclosures prior to conversion, as well as, first time interim and annual financial statements, Assessing, measuring and communicating impacts to the business’s performance, by virtue of adoption of new standards, and the allowable choices within each. Determining business process, control and system changes as necessary in order to successfully transition to new operating practices. Identifying corporate governance changes resulting from IFRS adoption.
VALUATION SERVICES UNDER IFRS:-
POST CONVERSION SERVICES – Investor management, Annual Report Presentation, press release Meets etc.
IFRS TRAINING – Various practical training coerces of short and long duration based on client requirement.
To-date, organizations have relied on Rajput Jain & Associates to assist them in improving the design and operational effectiveness of their internal controls over financial reporting. Similarly, we view the transition to IFRS as an opportunity to make advancement along a number of related fronts:
Our goal is simple – to enable your organization to adopt and communicate, with morale and authority, all relevant changes and enhancements to systems, controls, processes and staff by way of a easy transition to the new accounting standards.
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V J M & Associates LLP