- for a part of a legal entity in the framework of mergers and acquisitions (carve-out);
- combined financial statements;
- management reporting in accordance with the principles of IFRS;
- reporting for the purposes of legislation on controlled foreign companies (CFC)
International Financial Reporting Standards
The International Financial Reporting Standards (IFRS) are a set of financial reporting rules developed by the International Financial Reporting Standards Committee. As of 1 January 2005, IFRS are binding on all companies whose securities are traded in the capital markets of the European Union (EU).
The main differences between IFRS and Russian accounting rules are:
In accordance with IFRS, the perimeter of consolidated financial statements must include not only the parent and subsidiary companies (as a rule, with a share of more than 50%), but also companies over which there is actual control in the absence of direct legal control. In addition, there are accounting rules for companies in which the parent company owns less than 50%
The tax authorities continue to be the main users of RAS financial statements, while IFRS clearly distinguishes between accounting and tax accounting. The main users of IFRS statements are investors who either invest in the company's shares or provide it with debt financing
Most IFRSs actively promote the principle of accounting for the assets and liabilities of companies at the lower of fair (market) value and recoverable amount
IFRS has a clear set of rules for accounting for acquisitions of companies, which in some cases require the preparation of an independent assessment of the assets and liabilities of the acquired companies
IFRS require recognition or at least disclosure in situations where there is even a small probability of cash outflows from the company. An example is the need to create a reserve in the reporting if there is a possibility of an adverse outcome of the lawsuit. This leads to the fact that, all other things being equal, the results of IFRS activities will be more conservative than RAS
Due to the great development of financial markets, IFRS has a structured set of rules for accounting for both standard financial instruments (receivables from customers, loans issued and received) and derivative financial instruments (futures, options, etc.)
IFRS has rules for accounting for a number of non-standard for RAS transactions, including separate rules for accounting for pension assets and liabilities, accounting for operations in agriculture, investment real estate, etc.
IFRS require the reflection of business transactions in accordance with their essence, despite their formal organization
Preparation of reports and provision of consulting services under IFRS is the main activity of ADE Professional Solutions.
- Reporting support
Our key advantage is that ADE Professional Solutions is responsible both for the preparation of IFRS reports and for supporting the audit of these reports before the date of signing the audit opinion. From the very beginning of the reporting work, we help the Client's management to make the most balanced decisions when choosing accounting approaches under IFRS.
- Reporting automation
Our company has significant experience in automation / methodological support for preparing IFRS / management reporting on various platforms, including IBM Cognos, 1C Holding Management, Oracle HFM, SAP, Anaplan. We will help you prepare an automation methodology that can be implemented based on the requirements of a specific platform.
ADE Professional Solutions specialists have significant experience in the successful completion of projects for the preparation of financial statements in accordance with IFRS. Our company has ACCA Platinum Approved Employer status. All employees who participate in the preparation of financial statements in accordance with IFRS, either undergo training, or have received an ACCA certificate (full scheme).
- Process Transparency
Understanding the specifics of our services, we use the most transparent and simple models of transformation and consolidation, we also pay attention to documenting the most important points and methodological aspects. At the request of the Client, we are ready to transfer all working documents to the client and auditors.
- Convergence of accounting under RAS and IFRS
We have substantial experience in the issues of convergence of accounting under Russian accounting standards and IFRS. We will help you make correct changes to your accounting policies and business reporting processes to minimize differences between the two types of accounting.
One of the accepted practices is to gradually transfer the reporting process to the client's employees, including their training, to further reduce the involvement of ADE Professional Solutions specialists.
Our company annually issues a huge number of reports. Our experience is diverse both in terms of industries (aluminum production, oil and gas production, agriculture, real estate, electricity, media business, etc.) and geographically (Russia, Kazakhstan, Romania, Holland, Cyprus, Great Britain, China). We can prepare IFRS reporting for any, even the most specific company, transforming it from the most exotic local accounting standards.
ADE Professional Solutions has been a leader in outsourcing financial reporting under IFRS since 2006. This service is our main specialization. Since 2010, we have been participating in the rankings, holding the leading positions (2nd place in 2018).