GAAP Conversions

The conversion of existing financial statements to a new set of accounting rules can be time-consuming and requires an exhaustive exercise of comparing existing accounting policies and practices with requirements of the new accounting framework, quantifying differences and preparing financial statements. Moreover, the changes in the accounting rules also have an entity-wide impact in terms of collating the right numbers, training business and finance teams and making changes to systems and processes. 

Similarly, the adoption of new standards requires a precise understanding of requirements and a transition plan to identify potential changes to numbers, systems and processes.

With global corporate integration enabling exponential growth for Indian companies, financial reporting in an internationally accepted framework is inevitable. For dynamic Indian businesses, the challenge to catapult into the next phase of growth magnifies with the ever-increasing focus on quality and transparency of financial reporting by various stakeholders. On 16 February 2015, the MCA notified the Ind AS and roadmap for implementation thereof.

We understand the importance of aligning financial reporting with regulatory changes and the need for accurate financial reporting.

  1. – IGAAP to Ind AS
  2. – IGAAP/ IFRS to – USGAAP
  3. – IFRS/ USGAAP to IGAAP/Ind AS
  1. – Regulatory changes: Ind AS became applicable in India in 2015/IFRS became applicable in Singapore in 2018
  2. – Cross-border acquisition triggering GAAP conversion of the acquiree’s books
  3. – Equity/Debt raising in a different market
  1. – Multiplicity of GAAPs for statutory/group reporting and tax compliance (eg Ind AS, IFRS and ICDS typically in many Indian companies)
  2. – Key accounting complexities in GAAP conversion: Business combination, financial instruments, deferred taxes, consolidation, etc.
  1. – Detailed diagnostic reports
  2. – GAAP adjustment computation templates
  3. – Converted financial statements, including disclosures
  4. – Customised trainings for building in-house capabilities