- For EU/international companies in need of a US GAAP financial report: IFRS to US GAAP adjustments
Many European and internationally based companies also operate in the United States where US GAAP is applied. These companies often need to present their financial results to potential partners, creditors, or other users without incurring the expense of maintaining a dual IFRS/US GAAP reporting system. Since IFRS and US GAAP are generally comparable, it is usually possible to prepare a US GAAP compatible financial report by making adjustments at the financial statement level. If more thorough adjustments are needed, they can often be made at the general ledger level. While such adjusted financial reports are not sufficient for reporting to the SEC, they are generally acceptable to other financial users and also external auditors. - For US companies in need of an IFRS financial report: US GAAP to IFRS adjustments
Many US based companies also operate in the European Union or other jurisdictions where IFRS is applied. These companies often need to present their financial results to potential partners, creditors, or other users without incurring the expense of maintaining a dual US GAAP/IFRS reporting system. Since US GAAP and IFRS are generally comparable, it is usually possible to prepare an IFRS compatible financial report by making adjustments at the financial statement level. If more thorough adjustments are needed, they can often be made at the general ledger level. While such adjusted financial reports are often not sufficient for regulatory reporting purposes, they are generally acceptable to other financial users and also external auditors. - For international companies with local subsidiaries: needs based advisory
Understanding where IFRS/US GAAP and national accounting standards diverge is critical if a national GAAP subsidiary is to produce an IFRS/US GAAP financial report that can be consolidated by its parent. Depending on the subsidiary's materiality, it may be possible to simply make adjustments. In other situations, it will be necessary to design and implement a rigorous dual reporting system. We can assist companies with needs evaluation and, if a dual system is required, with the design and implementation of this system. Note: as this service generally requires on-site presence, it is only offered to EU based subsidiaries. - For local companies transitioning to IFRS or US GAAP: systems implementation
Understanding where IFRS (reporting standards as required by EC 1606/2002) and national statutory accounting standards (as required by the Accounting Directive) diverge is critical when a company begins to publish IFRS financial reports. For example, while IFRS 16 has eliminated operating leases, many national GAAPs continue to accept them. Similarly, while US GAAP (mandatory for SEC reporting) requires a right-of-use (ROU) asset to be recognized even for operating leases, many national GAAPs continue to have operating leases off-balance sheet. In most situations, it is not possible to simply make adjustments. Instead, it is generally necessary to design and implement a rigorous dual reporting system. We can assist companies with both the design and implementation of such a system. Note: as this service requires on-site presence, it is only offered to EU based entities. - For joint service centers: staff training
Many companies establish joint service offices internationally. While staffing these offices with local residents is generally reasonable, it introduces the need for extensive staff training as local employees are often not well versed in either IFRS or US GAAP guidance. As a result, the primary focus of my on-site training is the staff employed at these joint service offices. Note: as this service requires on-site presence, it is only offered to EU based centers. - For all companies: applying knowledge continuously
As accounting guidance changes, companies have to adapt. For this reason, besides initial implementation, I also assist companies in updating their systems and procedures to reflect the requirements of new guidance. Similarly, when companies make changes to their operations—for example, acquiring a new subsidiary or introducing a different product line—they need to update their accounting procedures and systems.
