IFRS Conversion Tool
Generally, the conditions required for the automatic generation of data, especially for retroactively determining the necessary IFRS adjustments or IFRS financial statements, are not met. Thus it is necessary to transfer the previous figures and structures, starting with the previous local GAAP balance sheet, to the new IFRS structure and valuations. 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 account structure, if necessary
- Recording the IFRS adjustments which have an effect on net income and IFRS reclassifications to be made directly in equity in the conversion tool being utilised
- Transferring the reporting package in the IFRS structure to the IFRS valuations on the basis of the recorded IFRS adjustments and reclassifications
- Recording the carrying amounts of the local tax accounts to determine deferred taxes on the differences between the tax accounts and the local GAAP balance sheet, and between 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 between the local GAAP balance sheet and the IFRS balance sheet
- Absorption of the deferred taxes into the IFRS structure
With the help of an MS Excel-based tool, parallel accounting according to local GAAP and IFRS can be done simply and in a structured manner outside the existing ERP systems. The tool offers the possibility of loading the existing local GAAP structures and values into the tool using an interface and then uploading the IFRS structures and values back into the ERP system.
The tool is suitable for the initial conversion of accounting to international accounting standards as well as for the long-term mapping of parallel valuations. The latter is often 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 accounting.
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You can request further information about the Conversion Tool using our contact form.
