Preparation for IFRS (International Financial Reporting Standards) implementation
IFRS implementation process is broken down into the following three phases and BDO Toyo & Co. provides the best services applied in respective phases.
1) Analysis and assessment phase
This phase is the most important. Firstly, the company clarifies an objective of IFRS adoption, builds a project team and develops a working environment to promote the IFRS implementation on a company-wide basis.
Secondly, we understand not only the impact on accounting and but also the impact on business process, information system and the necessity of change in business management system. We recognize issues for IFRS adoption and clarify IFRS implementation policy and develop a work plan.
BDO Toyo & Co. provides our impact analysis tool that was originally developed, conducts trainings and supports to develop a work plan in this phase.
2) Implementation phase
This is a main phase and it requires tough tasks consuming much time. The company makes solution for the issues that have been recognized and creates new rules and systems for IFRS adoption. As for accounting, the company understands differences between IFRS and Japanese accounting standards, and then considers accounting treatment for the differences, develop group accounting policies, reviews a scope of consolidation, unifies an accounting period in group companies, and designates a collection method of IFRS disclosure information.
In parallel with IFRS implementation, the company modifies business process and information system, and considers new management system. After finalizing to prepare group accounting policies and to define new business process and information system, the company conducts trainings for staff about practical implication of IFRS adoption.
BDO Toyo & Co. supports a development of group accounting policies, revision of company's regulations and manuals and consideration of IFRS disclosure information, reviews revised consolidated packages, conducts trainings and assists the IFRS implementation to the affiliate's entities.
3) Post implementation phase
In this phase the company adopts new accounting policies and procedures that have been developed and commence operations under new business process and information system, and then prepares financial statements based on IFRS.
BDO Toyo & Co. supports preparation of financial statements based on IFRS, while also confirm the operation under modified regulations and manuals and support the assessment of efficiency of internal control.