MAKING SENSE OF IFRS
Whilst the aim of IFRS is to establish standards that businesses, auditors and investors can readily understand, IFRS is one of the most technical aspects of accounting. In terms of the day-to-day aspects of their businesses, many larger companies can comfortably deal with IFRS. However, there are areas where our specialist knowledge will save you considerable time, avoid mistakes and ensure compliance.
These can include checking that your own statutory accounts include the correct disclosures, reviewing your current accounting processes for conformity with IFRS requirements and the introduction of new accounting standards. We extend this service to all current IFRS preparers and not-for-profit entities. If your company is getting ready to be listed, we can prepare you for your listing requirements. If you are a growing business involved in M&A activity, we can ensure you understand the impact of Local GAAPs on acquisitions and convert your new subsidiaries to IFRS to allow for simple consolidation. We support our clients with board submissions, auditor interactions, reporting accountants and regulator interactions.
UK GAAP TECHNICAL ACCOUNTING
IFRS is likely not the answer for all companies. The Financial Reporting Council introduced New UK GAAP (FRS 100-105) to replace the old UK accounting standards, improving consistency, and updating the requirements for evolving business transactions. FRS 102, as implemented by most UK non-listed preparers, is based on IFRS for SMEs, with significant changes to comply with company law and to include extra accounting options.
Although FRS 102 was introduced to provide a simpler framework than IFRS for UK preparers it does not remove all the difficulties in applying accounting standards to complex transactions for your business. Our experts in both IFRS and UK GAAP can assist you with applying UK GAAP to your complex transactions, reviewing your existing conformity with UK GAAP and company law and assisting with the introduction of new accounting standards and FRC thematic review findings. We can also assist you in making the correct accounting policy choices to suit your business’s needs.
We also support UK subsidiaries, that prepare under New UK GAAP, of overseas groups to provide their parents with valuable insights into the required conversion adjustments to aid consolidation into IFRS or other Local GAAP.
CLARITY, INTEGRITY AND RELIABILITY
IFRS and UK GAAP standards are not only for statutory purposes, but also to give auditors, investors and potential purchasers and partners the decision-making information they need. It’s in your interests to have accurate and compliant reporting, and we will provide that efficiently and cost-effectively.
On the other side of the table, if you’re scrutinising business with a view to acquire it, we can examine their IFRS or Local GAAP records and interpret them for you. Where we identify anomalies, we will dig deeper to ascertain whether they are simply down to unforeseen errors or if there is a more serious underlying reason. As already mentioned, the standards are regularly updated and inadvertently missing an aspect of the new rules can result in apparent non-compliance. For this reason, our team is always diligent in familiarising themselves with new standards (such as IFRS 16 Leases, one of the more recently introduced updates), IFRIC announcements and thematic reviews at the earliest opportunity.
EXPERT ADVICE ON IRFS
If you are being audited by a company, it’s most likely they will decline to provide you with IFRS advice. We are ready and able to step in and deliver that service for you by offering a more responsive, cost-effective response for your IFRS services.
By choosing AAB, you have the benefit of a fresh point of view, independent from your current auditor. Where you might usually receive rather limited guidance, we go further and provide greater detail, with useful insights and interpretations to help you achieve your goals. Additionally, as we don’t delay the process through multiple layers of review, our service is more agile. You’ll get a considered response faster, plus the benefit of more senior and experienced input.