IFRS Implementation Service
1. Overview
IFRS （International Financial Reporting Standards) is the standards which has being established by International Accounting Standards Board（IASB）. In Japan financial reporting has been prepared in accordance with Japanese standards. However, it is allowed to implement IFRS for disclosure of financial reporting after March 2010 in Japan in accordance with the international circumstances.
In 2012, it is going to be determined whether IFRS should be adopted officially. At the earliest, in 2015, IFRS will be adopted by listed companies. IFRS is totally different from generally accepted accounting and reporting standards in Japan including performance indexes. If the companies only adjust differences between IFRS and Japanese standards without considering the difference of performance indexes, they will face risks of deteriorating such indexes.
Therefore, it is necessary for the companies subject to IFRS to investigate and analyze the impact on strategy and processes by adopting IFRS before the adoption in order to maintain and develop company value.
So, we consider that the real goal of implementing IFRS is "optimization to IFRS" which means to minimize the adverse impacts and maximize the advantages by strategic actions.
2. Content of Our Services
Our company is led by CPAs with wide experiences of audit of listed European companies. We support your implementation of IFRS with best and smooth performance based on the following 4 steps.
Phase 1: Analysis
We analyze the area and the approximate amount of impacts by IFRS adoption in short period（1-3 months） in order to figure out the issues and identify the areas which need solutions in phase 2 (Scoping).
Phase 2: Investigation and Planning
We perform the detail investigation on the areas which are identified as in-scope in Phase1 and clarify the issues to deal with before the first year of IFRS adoption. Regarding the issues, we develop the best optimization strategy in order to minimize adverse impacts and maximize advantageous impacts.
Phase 3: Realization
We support you to implement the strategy planned in Phase2. Additionally, we prepare trial F/S by selecting the most favorable accounting policies for you with reasonable basis. We negotiate with your auditors regarding issues and accounting policies adopted in the trial F/S 100% on your side.
Phase4: Maintenance
We support your preparation of the final F/S. In addition, we offer training and instructions to your personnel on site so that you can maintain closing procedure smoothly.
3. Advantages of Our Services
We think that there are four essential points when customers select external professionals on supporting IFRS implementation.
The first is understanding of IFRS and accounting audit : Professionals of supporting IFRS implementation are required a great deal of knowledge of IFRS, but the standards have been frequently amended and also will be in the future. Therefore, it is required to understand and catch up with the latest standards in original sentences.
Also, IFRS is considered to be principle basis and companies are responsible to prove that their accounting policy is appropriate. However, your financial auditors may not provide you with options of your favor. Rather, the auditors are limited to provide you with such advice in perspective of independence. Therefore, it is important to have experience and knowledge of auditing in order to explain your accounting policy to auditors.
The second is capability in strategy, business operations and IT: Implementing IFRS impacts not only on accounting processes but also on business operations and IT processes. Also, it is important to consider the change of corporate strategy due to the change of performance index to comprehensive income. Therefore, the professionals need to understand those impacts and provide you with solution of all aspects in strategy, business operations and IT.
The third is quality and flexibility of services to be provided: The quality means (1) quality of information that we provide you (2) quality of work. Professionals need to be in the position of providing you with the best options in favor of you. Regarding flexibility, professionals need to be in the position to prepare other external supporter to make short time line for example. The quality and flexibility of services to be provided differs depending on company's circumstances, and professionals need to correspond with wide variety of such demand flexibly.
The fourth is cost efficiency: Professionals should work cost-efficiently in correspondence with above three points.
In the light of the above four points, our services have following advantages in order to support your implementation of IFRS strongly.
