International Financial Reporting Standards (IFRS) make it easier for users of financial information to understand and compare financial information across national boundaries. Transition to IFRS reporting can be a demanding process and is an accounting language characterized by frequent changes. Therefore it places great demands on monitoring and adjustment, even after a conversion.
IFRS may affect several of a company's procedures and systems and sets stricter requirements on a company’s competence needs. Conversion to IFRS can also influence a company’s financial reports and its balance sheet size. If a public offering is being considered, it is important to bear in mind that listed companies must use IFRS, and it may be advantageous to convert to IFRS well in advance of the IPO.
Some of the challenges that must be addressed with an IFRS conversion:
- Impact on reported results, balance sheet figures and key figures
- Adapting to new accounting solutions
- Increased demand for additional information and systems for gathering such information
- Specific evaluation of the effect on important individual items/areas such as financial instruments, assets, prior acquisitions and tax
- Need for greater competence, both in converting to IFRS and the ongoing reporting thereafter
How PwC can help:
PwC has specialists with extensive knowledge of IFRS in complex areas such as financial instruments, pensions and mergers. We have extensive experience in assisting clients in both the conversion and adaptation to on-going changes in reporting requirements. We contribute with leadership and structure through the operational challenges resulting from the change in accounting standards.
Contact us
Partner I National leader, Audits and Trust Solutions, PwC Norway
Tel: +47 952 60 113