Services

International accounting (IFRS)

The International Financial Reporting Standards (IFRS) framework often seems somewhat unconventional at first glance as it pursues different goals to those set out in the German Commercial Code (HGB). The framework itself often appears complex and extremely lengthy in terms of the explanatory notes. Despite this, a lot of companies are now switching their auditing methods over to IFRS.

Globalisation of the financial markets is just one of the factors influencing companies’ decisions to expand their operations to international levels. This in turn makes it vital for companies to use the internationally recognised reporting standards, IFRS, especially when preparing consolidated financial statements and going public. External requirements may also mean that companies are obliged to publish their annual reports according to the International Financial Reporting Standards (IFRS).

By way of example, the following parties may well have an interest in seeing IFRS-compliant reports:

• Credit institutes (Basel II rating, foreign financing)
• Institutional investors (particularly those based overseas)
• Foreign parent companies
• Rating companies

Since 2005 (2007 at the very latest), capital market-oriented companies in the EU are obliged to prepare their reports according to the International Financial Reporting Standards (IFRS).

Despite this, the above points may be a good reason for sole proprietorships to prepare their reports according to the International Financial Reporting Standards (IFRS). With this in mind, and to make it easier to compare financial reports, in July 2009 the International Accounting Standards Board (IASB) introduced a special but voluntary standard - IFRS for small and medium sized entities (SMEs). 

Our competence team receives ongoing special IFRS training and has more than 10 years of IFRS experience. This means that we can assist our clients of various sizes and from all different kinds of industries when it comes to the following:  

Services on offer:

•  Comprehensive cost-benefit analysis with regard to introducing and 
   implementing IFRS
•  Support during the switch from the German Commercial Code (HGB) 
   to IFRS
•  Practical assistance when preparing IFRS financial statements   
•  Proactive identification and discussion of changes to regulations as 
   well as their impact on annual reports and financial accounting
•  Auditing / audit review of monthly and quarterly reports (e.g. for  
   subsidiaries to be included in the IFRS consolidated financial 
   statements)  
•  Auditing of consolidated financial statements and company financial 
   statements based on IFRS

We focus on supporting listed service companies and implementing IFRS in closed-end investment companies and limited-company structures.