IFRS & US GAAP Accounting Advisory

Service Overview

Our accounting advisory services provide technical expertise in both International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). We help organizations navigate complex accounting requirements, implement proper accounting policies, and ensure compliance with applicable standards.

With deep knowledge of FASB Accounting Standards Codification (ASC) and International Accounting Standards (IAS/IFRS), we provide authoritative guidance on technical accounting issues, support framework conversions, and help resolve complex accounting questions.

US GAAP Technical Services

Revenue Recognition (ASC 606)

• Five-Step Model Implementation: Identify contract, identify performance obligations, determine transaction price, allocate price, recognize revenue
• Contract Modifications: Proper accounting for change orders, amendments, and contract terminations
• Variable Consideration: Estimation methods for refunds, rebates, performance bonuses, and price concessions
• Contract Costs: Capitalization of incremental costs to obtain and fulfill contracts per ASC 340-40

Lease Accounting (ASC 842)

• Lease Classification: Operating vs. finance lease determination using quantitative and qualitative criteria
• Right-of-Use Asset & Lease Liability: Initial measurement and subsequent measurement including interest accretion and amortization
• Lease Modifications: Accounting for changes in lease terms, extensions, and terminations
• Embedded Leases: Identification and separation of lease components from non-lease components

Financial Instruments (ASC 825, 326)

• Fair Value Measurement (ASC 820): Fair value hierarchy, valuation techniques, and disclosures
• Credit Losses (ASC 326): Current Expected Credit Loss (CECL) model for financial assets measured at amortized cost
• Hedge Accounting (ASC 815): Cash flow hedges, fair value hedges, and hedge effectiveness testing

Business Combinations (ASC 805)

• Acquisition Method: Measurement of consideration transferred, assets acquired, and liabilities assumed at fair value
• Goodwill & Intangibles: Recognition and measurement of goodwill and separately identifiable intangible assets
• Contingent Consideration: Measurement and subsequent accounting for earnouts and other contingent payments

IFRS Technical Services

Revenue Recognition (IFRS 15)

• Five-Step Model: Similar to ASC 606 but with some differences in application and disclosure requirements
• Principal vs. Agent: Determining whether entity is principal or agent in arrangements
• Licensing: Recognition of revenue from licensing of intellectual property

Lease Accounting (IFRS 16)

• Single Model Approach: All leases (except short-term and low-value) recognized on balance sheet
• Initial Measurement: Right-of-use asset and lease liability at lease commencement
• Subsequent Measurement: Interest method for lease liability and straight-line or systematic basis for ROU asset

Financial Instruments (IFRS 9)

• Classification & Measurement: Amortized cost, fair value through OCI, and fair value through profit or loss
• Expected Credit Losses: Three-stage model for impairment assessment
• Hedge Accounting: Requirements and application of hedge accounting under IFRS 9

Advanced Technical Topics

Consolidations (ASC 810)

• Variable Interest Entities (VIEs): Analysis of control through variable interests, primary beneficiary determination
• Consolidation Procedures: Elimination entries, non-controlling interests, and step acquisitions
• Equity Method: Application of equity method for investments in associates and joint ventures

Stock-Based Compensation (ASC 718)

• Fair Value Measurement: Valuation of stock options using Black-Scholes or binomial models
• Grant Date Determination: Identifying grant date per ASC 718-10-25-5
• Service and Performance Conditions: Accounting for graded vesting, market conditions, and performance conditions
• Modifications: Accounting for modifications to share-based payment arrangements

Income Taxes (ASC 740)

• Deferred Tax Assets/Liabilities: Calculation of temporary differences and deferred tax accounting
• Valuation Allowances: Assessment of realizability of deferred tax assets (more likely than not threshold)
• Uncertain Tax Positions: Recognition and measurement of uncertain tax positions under FIN 48 (ASC 740-10-25)
• Interim Tax Accounting: Effective tax rate calculations and discrete item recognition

Foreign Currency (ASC 830)

• Functional Currency Determination: Assessment of primary economic environment
• Translation vs. Remeasurement: Application of current rate method vs. temporal method
• Foreign Currency Transactions: Accounting for gains and losses on foreign currency transactions
• Cumulative Translation Adjustment: Accumulation in OCI and reclassification triggers

Policy Documentation & Conversions

Accounting Policy Manuals

Comprehensive documentation of accounting policies covering:

•Revenue recognition policies
•Inventory valuation methods
•Fixed asset capitalization and depreciation policies
•Lease accounting policies
•Provisions and contingencies
•Foreign currency translation

GAAP to IFRS Conversion

Support for converting financial statements from US GAAP to IFRS, including:

•Gap analysis identifying differences
•Impact assessment on financial statements
•Restatement of historical financial statements
•Dual reporting support during transition