Case Study: IFRS Conversion

Overview

  • Small US technology organization, recent acquisition of a Japanese public company

Objective

  • Convert from cash to an accrual based accounting
  • Quarterly reporting to parent in both US GAAP and IFRS
  • Satisfy KPMG that all IFRS differences were identified

Approach

  • Compare Company processes to list of US GAAP vs IFRS differences (proprietary list)  

  • Educate staff and management on how accrual accounting impacted their record keeping and reporting

Results

  • Identified very few IFRS differences, and most were not likely to occur regularly
  • Incorporated the differences into process controls established for JSOX
  • Passed KPMG review

Value

 

  • Very little time was invested by the organization whose accounting personnel had no experience performing this analysis, allowing management to focus on running the business