AFC

Accounting Advisory Services

Accounting Advisory Services

In the current global environment that many companies operate within, there are many challenges for these companies from an accounting perspective as shareholders, regulators and other external stakeholders take a greater interest in how companies report, disclose and communicate their financial results.

 With the increased scrutiny on companies financial reporting and disclosure requirements that the standard setters and regulators are requesting from companies, many businesses are often hard pressed to manage these additional requirements.

 PKF member firms provide Accounting Advisory Services (AAS) and have a dedicated team of professionals with in-depth technical accounting knowledge, industry insight and substantial industry experience. Our teams are experienced in advising clients on challenging, complex issues arising from transactions, business decisions and regulatory changes.

 It is more important than ever for organisations to obtain specialist technical accounting advice and support to help them adapt and succeed. Our teams are committed to helping clients reach the right accounting answer in the context of reporting objectives, commercial reality and regulatory requirements.

 Our teams deliver a consistent, cost-effective service, backed by the resources of a network of professionals in over 244 offices worldwide, forming one of the world’s leading accounting advisory networks.

 Services offered 

            Transactions and financial reporting advice

            Accounting advice to a restructure

            Accounting standards requirements 

Transactions and financial reporting advice

Our AAS team will work with you to optimise the transaction outcome by addressing key accounting and regulatory challenges that arise on mergers, Initial Public Offerings (IPO), acquisitions and divestments including: 

�  Identifying and analysis of accounting issues.

�  Analysing financial and regulatory impacts.

�  Preparing opening balance sheets, carve-out, pro forma or consolidated financial statements.

�  Modeling of impacts on future income statements, balance sheet items.

�  Working with our transaction advisors on valuation projects and determining the appropriate acquisition accounting adjustments.

�  IPO readiness.

�  Post IPO support. 

VAS/IFRS conversions 

Local GAAP conversion to IFRS require in depth technical understanding of not only the accounting differences, interpretations and potential approaches but also understanding the business implications such as tax relationships, financial disclosures, system changes and training of staff.

We at PKFI have developed a GAAP conversion methodology that will help you to a smooth transition to IFRS and this is highlighted below. 

 

Impact Assessment

 

Design, Planning & Implementation of IFRS

 

Training & Embedding of IFRS

Phase 1

 

Phase 2 and 3

 

 

 

 

 

 

 

Phases 3 and 4

 

 

�  Define project governance and infrastructure

�  Develop communication and training strategy

�  Design and finalise project plans

�  Identify and train project teams

�  Identify IFRS policy options

�  Finalise selection of IFRS accounting policies and communicate this to management

 

�  Identify solutions for accounting and reporting, tax, business, process, and systems changes associated with selected IFRS accounting policies

�  IFRS conversion begins in phases

�  Rollout of proposed solutions

�  Continued training and knowledge sharing

�  Calculate IFRS adjustments for each required period

�  Complete the reporting packs for the required disclosures

�  Consolidate IFRS results

 

 

    High level assessment of the impact of IFRS on the financial statements, key issues and actions to consider

 

    High level assessment of potential impact on systems and financial reporting processes

 

 

 

 Resolve date gaps within the general ledgers and source systems

 

 Continued review of controls over IFRS financial reporting processes

 

 Post-implementation review of systems and financial reporting processes

 

 Develop policy guidance and on-going training programme

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Accounting advice for a restructure
We can assist clients who are undertaking restructuring of their business or when financing the purchase of assets in helping clients to understand the following:

o      The values at which transfers of legal entities, businesses or assets should be recorded.

o      The interaction of accounting requirements and the provisions within company law relating to merger relief and group reconstruction relief.

o      Distributable reserves issues that may arise which could limit future dividends and suggestions on how to alleviate such issues.

o      The mechanics of merger accounting and acquisition accounting.

o      The accounting for employee benefit obligations, share awards and goodwill as businesses and responsibilities are transferred between group entities. 

Accounting standards requirements
We can support companies in implementing new accounting standards and regulation in their businesses. This support would include the following:

o      Implementing IFRS for published or forthcoming financial statements including advice on notes to financial statements and adequacy of documentation.

o      Technical assistance in complex accounting issues and enhance financial information.

o      Meeting local regulatory requirements under local GAAP.

o      Identifying the financial reporting needs.

o      Understanding the impact on accounting information systems.

Understanding the tax implications to assist clients to proactively control and manage tax reporting requirements.

Accounting standards requirements
We can support companies in implementing new accounting standards and regulation in their businesses. This support would include the following:

  Implementing IFRS for published or forthcoming financial statements including advice on notes to financial statements and adequacy of documentation.

  Technical assistance in complex accounting issues and enhance financial information.

  Meeting local regulatory requirements under local GAAP.

  Identifying the financial reporting needs.

  Understanding the impact on accounting information systems.

  Understanding the tax implications to assist clients to proactively control and manage tax reporting requirements.