The IFRS (International Financial Reporting Standards) reporting function involves a complex set of activities and tasks, ensuring that financial statements are prepared in accordance with international standards and providing transparency for investors, creditors, and other stakeholders.
Preparation and Collection of Financial Information
- Collecting accounting and financial data from the ERP or internal systems.
- Consolidating information from the group’s subsidiaries and entities.
- Ensuring data quality and accuracy before processing.
Conversion from Local Accounting to IFRS
- Analyzing differences between local standards and IFRS (Local GAAP vs. IFRS).
- Preparing necessary adjustments (e.g., IFRS 16 leases, IFRS 15 revenue, IFRS 9 financial instruments).
Preparation of IFRS Financial Statements
- Balance sheet, income statement, cash flow statement, statement of changes in equity.
- Explanatory notes (detailed disclosures).
- Presentation of adopted accounting policies.
Consolidation Process (for Groups)
- Eliminating intragroup transactions.
- Accounting for investments in subsidiaries, associates, and joint ventures (IFRS 10, IAS 28).
- Calculating non-controlling interests (NCI).