IFRS/GAAP Conversion

Several countries have adopted International Financial Reporting Standards (IFRS) as a way to make consistent, transparent and understandable the financial statements of public and private companies operating in multiple countries. The ever-increasing interconnectedness of the global economy and capital markets has accelerated the push for a single set of high quality global accounting standards.

Ghana had adopted International Financial Reporting Standards, in place of Ghana National Accounting Standards, as of 1 January 2007, for all listed companies, government business enterprises, banks, insurance companies, security brokers, pension funds, and public utilities. All small and medium scale enterprises (SMEs), state-owned organisations, and private organisations are required to use the IFRS for SMEs. However, for private companies SME’s, conversion to IFRS should be carefully considered and evaluated. Financial reporting based on full IFRS or IFRS for SME is different from the Ghana National Accounting Standards and having an advisor that understands how IFRS may impact your business or industry is critical. StarMarc’ IFRS professionals can help with the transition process.

Transitioning to IFRS is not just an accounting issue, but can result in significant changes throughout the organization. In addition to the changes to financial reporting, a switch to IFRS accounting will likely impact areas such as information systems, vendor contracts, tax reporting, and incentive compensation arrangements and benefit plans. Appropriate implementation planning is critical to the successful adoption of IFRS. Our line of services includes:

1. Assisting management with selecting IFRS accounting policy alternatives such as voluntary exemptions provided by IFRS 1, First-time Adoption of International Financial Reporting Standards, including the implications of selecting such alternatives.
2. Identifying client-specific differences between U.S. GAAP and IFRS.
3. Identifying information requirements for converting from GNAS to U.S. GAAP or IFRS/IFRS for SME.
4. Determining adjustments necessary to align financial reporting with the appropriate basis of accounting.
5. Preparing financial statements and disclosures to meet requirements.
6. Assisting with accounting systems and internal controls design and implementation.
7. Assisting with stakeholder communications.
8. Providing targeted training for accounting personnel.