Navigating the many complexities of IFRS financial reporting

In a rapidly evolving business and regulatory environment, the right guidance is more important than ever. TMO Consulting’s Assurance professionals draw on deep industry experience and global resources to help clients to navigate change, bolster investor confidence, and strengthen the value of their businesses.

A successful audit helps businesses create value and mitigate risk. TMO Consulting has assisted clients in navigating the many complexities of IFRS financial reporting. Backed by one of the world’s largest accounting and consulting networks, TMO Consulting offers the depth of resources to address complex technical issues – as well as the guidance of professionals who are recognized leaders in their fields. Our partners are invested in our clients’ success, giving you unparalleled access to senior professionals and decision makers.

Detailed advising to help your organization go global

TMO Consulting has successfully assisted companies converting from US GAAP to IFRS. TMO Consulting’s IFRS conversion process is broken down into four phases:

Phase 1: Preliminary Impact Assessment
Phase 2: Detailed Assessment
Phase 3: Implementation
Phase 4: Post Implementation Review

We understand many conversion projects have specific contractual or other deadlines.  We begin working with your financial and operational professionals immediately in order to gather information and design the most efficient procedures possible. During execution our professionals will communicate regularly throughout the project in order to avoid unforeseen events and to enable smooth and timely completion. The scope and nature of the engagement can vary depending on your IFRS needs and the compliance requirements of your financial statement auditor, if applicable.

Staying ahead of emerging standards

For US companies already applying IFRS, like any basis of accounting, the policies and application change as new standards and interpretations are issued. Technical accounting issues regularly arise and TMO Consulting is able to provide assistance, such as:

• Assessing the impact new standards and interpretations will have on a company’s financial statements, controls and business practices
• Assisting management in drafting IFRS accounting policies and technical memos
• Assessing the impact of and accounting for new contracts, arrangements and modifications to existing agreements
• Preparing financial statements and disclosures per IFRS requirements.

Resources to demystify financial instruments

IFRS 9 incorporates the requirements of all three phases of the IASB’s financial instruments project – classification and measurement, impairment, and hedge accounting. The differences between IFRS and U.S. GAAP in this area require careful consideration, for example the effective dates of IFRS 9 are different to the financial instruments standards under U.S. GAAP and debt modifications may result in different outcomes when applying the two different rules.

IFRS 9 At A Glance
IFRS 9 At A Glance is a short ‘key facts’ resource, outlining best practices around key application guidance, definitions and the practical expedients available.

IFRS in practice: IFRS 9 Financial Instruments
This publication provides comprehensive, in-depth practical information and examples around the application of key aspects of IFRS 9.

IFRS in practice: Applying IFRS 9 to Related Company Loans
This publication includes in depth analysis and commentary on the key requirements of IFRS 9 (focusing on those that are likely to be most relevant to related company loans) and uses examples to illustrate the application of these requirements in practice.

IFRS in practice: Applying IFRS 9 to Related Company Loans in the Real Estate Sector
The purpose of this publication is to illustrate the application of IFRS 9 to a number of common intragroup funding structures that a typical real estate group might have in place.

The publication considers five common funding structures for an investment property group and a typical funding structure for a property development group.

IFR bulletin: 2020/09 – Impairment Implications of COVID-19 
This bulletin highlights important considerations, including how to determine whether post-balance sheet date information should be incorporated into ECL measurement, how COVID-19 affects the staging of financial assets and other effects of the pandemic on ECL measurement.

Understanding contracts with customers

IFRS 15 establishes a single and comprehensive framework which sets out how much revenue is to be recognized, and when. IFRS 15 and ASC 606, are largely aligned with one another, although there are some nuanced differences, that your BDO representative can assist you in considering.

IFRS 15 At A Glance
A high-level ‘key facts’ document, outlining the requirements for each of the 5 steps under IFRS 15, the key application guidance, definitions and the practical expedients available.

IFRS in Practice: IFRS 15 Revenue from Contracts with Customers
This publication includes in depth analysis and commentary on each of the 5 steps of IFRS 15. In addition, it discusses issues that companies have encountered in implementing IFRS 15 and includes a number of examples to demonstrate how the standard should be applied.

Navigating the new Leases standard

IFRS 16 Leases brings significant changes in accounting requirements for lease accounting, primarily for lessees. IFRS 16 is effective for annual periods beginning on or after January 2019, whereas ASC 842 Lease Accounting has later effective dates depending on the nature of the entity. Once ASC 842 becomes applicable, there are multiple differences between IFRS and U.S. GAAP in this area, the main one being that IFRS 16 does not have a distinction between operating and finance leases.

IFRS 16 At A Glance
A brief document explaining the key requirements for both lessees and lessors under IFRS 16, the key application guidance, key definitions and disclosures.

IFRS in practice: IFRS 16 Leases
This publication looks at the scope of IFRS 16 and the required accounting for both lessees and lessors. It also explores the impacts of IFRS 16 in practice, including a number of examples.

IFR bulletin: 2020/05 – IASB responds to question about IFRS 16 and COVID-19
This document highlights relevant requirements in IFRS 16 and other IFRS Standards when considering how to account for rent concessions that are granted as a result of the COVID-19 pandemic.

IFR bulletin: 2020/08 – IASB Issues Amendments to IFRS 16: COVID-19 Related Rent Concessions
This publication explains the practical implications of the amendments with examples and includes a flowchart to demonstrate how the criteria to utilize the practical expedient are evaluated.