Transformation into IFRS

мсфо

The Law of Ukraine “On accounting and financial reporting in Ukraine” envisages a compulsory preparation of financial statements and consolidated financial statements according to the IFRS by public joint-stock companies, banks, insurance companies and companies that conduct business activity by the types defined by the Cabinet of Ministers of Ukraine. At the same time, the openness and transparency of financial statements in accordance with the IFRS facilitates company emergence into capital markets, stipulates investments and increases the quality and efficiency of financial operations.

There are two ways of financial statements preparationin accordance with the IFRS: transformation method and transaction method (parallel accounting).

Transformation of financial statements is the process of reporting preparation in accordance with the IFRS by regrouping of accounting information and adjustment of reporting items prepared according to GAAP.

In order to make statements transformation according to the IFRS,the reporting under GAAP and analytical breakdown to it regarding balance sheet items and income statementshould be prepared. It is carried out by making appropriate adjustments and additional entries in order to bring the assets, liabilities and capital to the level at which they should be reflected under the IFRS.

We would like to pay your attention to the service “Transformation of financial statements” that includes the following obligatory components:

Studying company’s business, evaluation of changes that took place in the company (new type of activity, changes in business processes) +
Analysis of the financial statements prepared in accordance with GAAP +
Identification of discrepancies between GAAP and IFRS +
Preparation of Accounting policy +
Implementation of transformational entries:

  •        reclassification entries
  •        adjusting entries
+
Valuation of assets and liabilities +
Creation of transformational table +
Completion of financial statement forms in accordance with the IFRS

  •        for the current period (2012)
  •        for the comparative period (2011)
+

The unified methodology for the transformation of Ukrainian statement into the statement that would comply with the IFRS does not exist. In each particular case it is affected by the specifics of financial and economic activity, peculiarities of accounting and accounting policy organization, availability of timing, financial resources and the personnel qualified in the field.

There are following advantages of using the transformation method: low timing and financial expenses, simplicity of the procedure, clearness of adjusting entries.

If you are interested in the transformation services, please fill in the questionnaire and send it to: audit@ap-center.com. The commercial offer will be prepared in accordance with the information provided in the questionnaire.

For more information about this service or for a service request, please contact us:

+38 044 568 57 95

+38 044 482 28 58

 

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