International accounting
Conversion to IAS / IFRS and US GAAP
International accounting standards are becoming ever more important. The IAS / IFRS have been mandatory for listed companies since 2005/2007. But they are also becoming increasingly important for small and medium sized companies.
Against the background of Basel II lenders and banks want internationally comparable documents and investor-orientated, realistic financial reporting.
§ 315a HGB (German Commercial Code) makes it possible to prepare exempting consolidated financial statements in according with IFRS.
International accounting has become a sign with which a company can clearly demonstrate its dynamism and ability to innovate.
The introduction of IAS / IFRS or US GAAP leads to a convergence of internal and external accounting and thus simplifies value based management of the company in accordance with uniform performance indicators.
More and more SMEs are being integrated into international groups which require reporting in accordance with international standards.
Preparation in accordance with IAS / IFRS and US GAAP
Many companies already report in accordance with IAS / IFRS or US GAAP. But the relevant expertise as well as personnel capacity for this is thinly spread. Most companies need support, especially in specific areas such as accounting for financial instruments, conducting and documenting impairment tests and purchase price allocations (PPAs) and preparing extensive notes.
FAS AG provides operational support in preparing your annual accounts in accordance with IAS / IFRS or US GAAP, especially in cases where auditors are not allowed to help because it would jeopardise their independence. We have over 10 years of experience in preparing financial statements in accordance with IAS / IFRS and US GAAP.
IAS / IFRS and US GAAP optimisation
After conversion to IAS / IFRS or US GAAP, there are often areas that need improving. This is sometimes due to the time pressure that often occurs during the conversion, sometimes to a concentration on specific areas and the resulting neglect of others.
As a result, it is often the case that, although the company reports according to international standards, its internal organisation and processes do not stand up to scrutiny by, for example, the Financial Reporting Enforcement Panel. In our experience, this particularly affects the areas of deferred taxes, hedge accounting and revenue recognition.
Professional opinions and appraisals regarding IAS / IFRS and US GAAP
Frequently, when preparing IAS / IFRS or US GAAP financial statements, issues and discussions with the auditor arise, which cannot be resolved by referring to the standards.
Peripheral areas of IAS / IFRS in particular are still insufficiently regulated and there are different interpretations in practice.
In such cases, FAS AG provides substantiated and auditable professional opinions and appraisals (“second opinions”), which are usually available at short notice.
You also benefit from the fact that financial statements prepared by FAS AG have been audited by a number of audit companies, which provides us with a very good overview of the accepted interpretations.
IT implementation of IAS / IFRS and US GAAP
Conversions to IAS / IFRS and US GAAP are usually performed under considerable time pressure and mainly focus on preparation of the first IAS / IFRS or US GAAP financial statements.
Usually, MS Excel® is used as a fast and pragmatic solution.
Sustainable conversion to IAS / IFRS or US GAAP, however, requires the implementation of corresponding IT systems.
In addition to the software solutions described below for implementing accounting in accordance with IAS / IFRS and US GAAP, FAS AG also supports companies in setting up their ERP and consolidation software for IAS / IFRS and US GAAP.
This support covers issues such as the creation of a (group) chart of accounts, creation of balance sheet and income statement, statement legacy data, compiling of input screens and a variety of reports.
For system implementation, we rely on competent partners with whom we have already implemented numerous IT systems for IAS / IFRS and US GAAP accounting.
