IFRS consulting

IFRS advisory: from strategic decision-making to successful implementation

Thanks to its gradual introduction, an increasing number of companies have been able to apply the International Financial Reporting Standards (IFRS) for individual reporting purposes.

Is transitioning to IFRS worth it?

We can now say that almost every company is able to take advantage of this opportunity, and the real benefits it can bring. Of course, this does not mean that adopting IFRS will be advantageous for every company concerned. The IFRS consulting team of our Financial Management business line helps our clients assess whether they can genuinely benefit from applying IFRS for individual reporting purposes. For this thorough preparations, deliberations and important strategic decisions are needed in advance.

When assessing an IFRS transition, we evaluate, among others:

the expected business and financial benefits of the transition
the risks of making the transition to IFRS
strategic decision points and available alternatives
the short- and long-term impacts of the transition on the company

Practical guidance for IFRS implementation

Rolling out IFRS not only has a strategic impact, however, but also a significant operational impact, and so we can help our clients

with practical advice in assessing the effects of the transition on business, financial and accounting processes,
aligning the ERP system in use with IFRS requirements,
in selecting an appropriate ERP system,
providing financial and accounting assistance to implement it.

Accounting policies and taxation

IFRS consulting involves offering practical help to our clients in drawing up IFRS accounting policies that best serve the company’s interests, and in updating the accounting policies following amendments made to IFRS standards.

By involving our tax consultancy colleagues we assess in advance the impact any IFRS transition would have on tax payment liabilities, for both the year of the switch and subsequent years.

IFRS group reporting and complex transactions

For clients that do not use IFRS for individual reporting, and only for consolidated reporting purposes, we:

prepare IFRS consolidated reports from data compiled under Hungarian accounting standards,
develop a group reporting system from the Hungarian accounting system
assign the individual general ledger numbers to the IFRS chart of accounts.

For single transactions that are more complex we help our clients map out the business event appropriately in the IFRS and/or Hungarian accounting system. We are happy to help our clients with:

deferred tax calculations
compiling cash-flow statements,
reply to ad-hoc IFRS questions.

Additional IFRS consulting services

support the preparation of the first IFRS financial statements
support the audit of the IFRS financial statements
assess the impact of accounting policy changes on the financial statements and on the company, and study the effect of planned changes in advance
assess the corporate tax base during the preparation of IFRS financial statements
provide support during tax inspections of IFRS tax bases