Thanks to its gradual introduction, an increasing number of companies have been able to apply the International Financial Reporting Standards (IFRS) since 2016 for individual reporting purposes. 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. Our IFRS consulting department helps our clients assess whether they can genuinely benefit from applying IFRS for individual reporting purposes.
Thorough preparations, deliberations and important strategic decisions are needed before a company can use IFRS for its individual reporting.
For our clients we map the risks of making the transition to IFRS and the impacts on the company, identify the strategic decision points, and present the impacts of the decision options. 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, or in selecting an appropriate ERP system and providing financial and accounting assistance to implement it.
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.
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, as well as develop a group reporting system from the Hungarian accounting system and 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 and compiling cash-flow statements.
Under IFRS consulting we also:
- 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
- reply to ad-hoc IFRS questions
- assess the corporate tax base during the preparation of IFRS financial statements
- provide support during tax inspections of IFRS tax bases