Transformation of financial statements in accordance with IFRS
National standards of accounting and financial reporting has developed largely under the requirements of the tax and regulatory authorities. The true picture of the financial situation in the organization, its assets and liabilities at the reporting does not provide information on the actual situation of the enterprise. Restatement of financial statements – a procedure that is able to adapt the information provided in the reports, in an international standard.
Transformation of financial statements under IFRS – the most acceptable variant of bringing the final financial documents to the state in which it will be able to evaluate foreign and domestic investors, banking and insurance companies, new business partners. In addition, the transformation of IFRS reporting will give undistorted and clear information about the financial situation of the organization, it is able to improve the rating and credibility of the company by potential partners.
the reporting Transformation in IFRS the standard is carried out by certified auditors of AF “MK Audit” on the basis of reports and analytical papers, prepared according to applicable accounting standards. The procedure involves regrouping and adjustment of articles of accounting in accordance with IFRS principles.
The ongoing transformation of financial statements at the initial stage identifies the existing discrepancies between national and international standards of formation. Detailed evaluation of obligations of the company and its assets, compliance with adopted accounting policy, its implementation in practice. Simultaneous transformation of financial statements and making adjusting entries. On the basis of the changes detected totals are generated and costs and revenues of the enterprise, which will appear in adapted to the international reporting standards.
Transformation of reporting into IFRS does not have a single methodology. It is developed by the auditors of AF “MC Audit” under each company individually. The timing of the transformation takes into account the specific features of the financial and industrial activity of the customer, peculiarities of accounting policies and General accounting.
Benefits of the transformation of reporting into IFRS format
Unlike the parallel account possible when the statements are originally compiled by IFRS conversion reporting has significant advantages:
- cost Savings enterprise – transformation is affordable for any enterprise;
- Save time – accounting staff not involved in the transformation and not distracted from their own responsibilities;
- high-grade transformation of accounting and financial reporting enables a company to enter the European economic community.
Order restatement of financial statements in accordance with IFRS