IFRS advisory
IFRS Awareness – Why is it important?
The EU listed companies already have their routine in the world of IFRS as they are obliged to prepare their financial statements in accordance with IFRSs – from 2005 onwards regarding their consolidated financial statements and from 2017 onwards regarding their separate financial statements.
If we look at the Hungarian Accounting Act, we would find that most of the companies - other than the mandatory application requirements, e.g. the above mentioned EU listed companies - have the IFRS transition as an option. Based on our experiences, transition from Hungariaan GAAP to IFRSs is desireable for companies specifically which are:
- members of an international Group or their aim is to enter into international markets
- planning to go public in the near future
- operating in a specific industry therefore consistency, convergence and comparability are considered important.
The trend obviously continues: the combination of the need for a common accounting language and the rapid development of digitalisation give rise to another promising solution: the European Single Electronic Format (ESEF) which makes IFRS financial statements machine-readible.
The application of IFRSs – including the new standards such as IFRS 9, IFRS 15, IFRS 16 – may provide numerous advantages also for non-listed companies, however, we would suggest to consider the related costs – let’s think together!
How can we help?
IFRSs may fundamentally change financial statements in terms of classification, measurement and disclosures which may mean serious challenge both for the preparers and users of financial statements.
Our expert team is happy to help prepare for the changes – either you are considering IFRS transition or in case you already apply IFRSs.
Also, we are here to help when you do not have - permanently or temporarily - the approriate professional competence at your company. Our aim is to provide personalised solutions, e.g. when you would need ’fresh pair of eyes’ in reviewing your financial statements before the annual audit takes place; when you would need ongoing support during the implementation of a new/amended standard; when you would need to make an accounting policy choice. Our common goal is to ensure that your company is in the best position possible when you face IFRS issues.
Our colleagues are professionals with both international (ACCA, DipIFR) and national (Hungarian Certified Auditor) qualifications. We have close relationship with the UK IFRS headquarters within BDO Network and we take part regularly on external and internal IFRS trainings and workshops in order to ensure our IFRS knowledge is up-to-date at any time.
Here are some examples of our range of services:
1. IFRS advisory - General
- Support in IFRS transition
- Interpretation of complex issues
- Interpretation of new and/or amended standards
- Support in the preparation of IFRS accounting policies and/or IFRS Notes
- IFRS trainings/workshops
2. IFRS advisory – Personalised solutions
- Review the IFRS accounting policies and IFRS Notes
- Preparation of accounting policy choices
- Assist in discussions with auditors
- Support during the group reporting processes
- Preparation of accounting papers/illustrative examples
3. Audit of IFRS financial statements
- Audit of annual reports prepared in accordance with IFRSs
- Review of IFRS Group Reporting Packages
- Verify the entities’ preparedness for transition to IFRSs
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