How to do the transition/conversion to IFRS?

"More than 100 countries on all five continents require or permit the use of IFRS. Major economies in Asia-Pacific, North America and Latin America have set out a time line towards the full adoption of IFRSs." - Rick Chan, Partner (Head of Audit)

Many companies around the world have either adopted or are in the process of transiting their local GAAP into IFRS. The jurisdictions in the Asia Pacific region are actively engaged in the IFRS conversion process in the next few years. Singapore itself will fully align itself with IFRS by 2012 as Indonesia  and Malaysia .

In Thailand, the top 50 companies listed on the Thailand Stock Market are expected to comply for accounting periods beginning on or after 1 January 2011.

The conversion to IFRS affects not only the accounting process but also the way in which businesses and day-to-day operations are run and which gives rise to an impact on the profitability of the enterprise.

Our experience in other countries shows that the transition/conversion process is at the same time a challenge and an opportunity. Instead of simply reconciling local GAAP to IFRS as topside entries, management will prefer to take a "fresh look" approach towards its accounting principles and financial reporting under IFRS. This will give the opportunity to companies to take full benefit of the transition to improve their organization and overall performance.

Mazars specializes in IFRS

Mazars can help you in the transition/conversion to IFRS. Our IFRS Team comprises of partners and senior staff members specialising in IFRS and located in offices around the world in Asia Pacific, Europe, South Africa, and the USA.

We have moved our experts from Europe to the Asia Pacific region, to support the Asian conversion towards IFRS. This way, Mazars can provide you with existing knowledge and previous extensive experience of IFRS applications.

Our IFRS team in Asia Pacific is led by Pascal Jauffret.

Our transition/conversion methodology to IFRS can briefly be summarised as follows:

• Tailored solution – A service solution that meets your specific needs and objectives;
• Integrated team approach – A well thought-out project structure with clear roles and responsibilities, combined with the support of technical experts;
• Milestone planning – Detailed milestones showing the status of the project and highlighting problems;
• Issues management – Identifying and resolving problems quickly and efficiently;
• Communication – Ensuring that all information is communicated effectively.

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SFRS 116

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SFRS 116: Key Issues to Address

The new standard on leases, Singapore Financial Reporting Standard (SFRS) 116, replacing standards such as SFRS 17 Leases and INT FRS 104 Determining whether an arrangement contains a lease, introduces changes that will primarily affect the financial statements of lessees.