IFRS Conversion Tool
Of the necessary IFRS adjustments or IFRS annual accounts do not usually exist. Thus it is necessary to transfer the previous figures and structures, starting with the previous balance sheet, to the new IFRS structure and valuation. The following measures are necessary for this:
- Transferring the figures from the balance sheet in the previous local GAAP structure to the new IFRS balance sheet and the profit and loss structure, if necessary;
- Depositing the IFRS adjustments which have an adjusting effect on net income and equity and which relate only to reclassifications in the conversion tool being utilised;
- Transferring the balance sheet II in the IFRS structure into the IFRS valuation on the basis of the deposited IFRS adjustments or reclassifications;
- Depositing the values of the local tax balance sheet accounts for a determination of deferred taxes on the difference between the tax balance sheet and the local GAAP balance sheet and the local GAAP balance sheet and the IFRS balance sheet;
- Determination of deferred taxes on temporary differences between the tax balance sheet and the local GAAP balance sheet and the local GAAP balance sheet and IFRS balance sheet;
- Absorption of the deferred taxes into the IFRS structure.
With the help of an MS Excel-based tool the parallel accounting according to local GAAP and IFRS can be done simply and in a structured manner outside the existing ERP system. The tool offers the possibility to load the existing local GAAP structures and values into the tool using an interface and then to transfer the IFRS structures and values by upload back into the ERP system.
The tool is suitable for the initial conversion of accounting to international accounting standards as well as for long-term depiction of parallel valuations. The latter is frequently a great advantage for companies which have to prepare local GAAP figures, e.g. for the tax accounts, as well as IFRS figures for their group balance sheet.
You can request further information about the Conversion Tool using our contact form.
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You can request further information about the Conversion Tool using our contact form.
