Conversion to IFRS standards
THE PROJECT
CONTEXT
We supported a group specializing in risk management & performance improvement in its transition to International Financial Reporting Standards (IFRS). The group, renowned for its expertise in inspection and certification, operates in over 25 countries, has more than 70 subsidiaries, and generates a revenue of 1.2 billion euros.
CHALLENGES
The group aimed to switch to IFRS within a tight timeframe while planning for an evolving organizational structure. Initially, the organization would be centralized during the first year of the transition, followed by decentralization in subsequent years.
KEY SUCCESS FACTORS
Rigorous project management with detailed tracking of achievements to meet deadlines.
Our achievements
Implementation of an agile consolidation process was instrumental in ensuring the successful completion of the initial IFRS closing, which was originally managed in a centralized manner. Additionally, we developed an operating procedure for gradually delegating the management of specific IFRS topics to subsidiaries in subsequent years.
We generated extensive and comprehensive documentation for each impactful IFRS standard to justify the group's position and validate its choices and options with the audit committee and external auditors.
We established well-structured working files and calculations for estimating the impacts of each IFRS standard. These files included detailed journal entries, providing a comprehensive and organized approach to assessing the effects of each IFRS standard.
The detailed configuration of the consolidation tool was prepared to facilitate the first IFRS accounts closing and anticipate the decentralization of specific IFRS topics for subsequent closings. This meticulous configuration allowed for a smooth conversion to IFRS reporting and set the stage for the decentralized management of certain IFRS aspects in future closings.