As a result of the globalization of business the number of cross-border M&A over the past years has increased, and many companies around the world now consider cross-border M&A as an essential part of their strategy in achieving globalization of their businesses.  Such cross-border M&A often requires US GAAP or IFRS conversion of financial information based on the local accounting principles for various reporting purposes.

 

In addition, as more and more countries around the world adopt IFRS, companies reporting in these countries change their reporting standards, making it necessary for their subsidiary or branch operations in the Asia and US to convert to IFRS.  

 

Converting a set of financial information from one accounting standard to another and embedding such processes of accounting standard conversion require change throughout the organization, affecting business processes, legal, IT, tax, accounting and reporting aspects of the business, etc.

 

ProWorks team together with our professional network in the US and Asia offer accounting standard conversion or such conversion impact studies particularly focused on the following areas:

 

  • Changing numbers: Reported numbers will be changed under a different GAAP.
  • Changing people: New GAAP will become the new language in internal and external communication and people at different levels and functions will need trainings.
  • Changing processes: New reporting processes will be established.
  • Changing systems: Data availability and system requirement will be revisited. Management information systems will be realigned.
  • Changing business: Performance and debt covenant compliance will be measured based on new GAAP numbers. Budget will be established based on new GAAP numbers.