Seminar “Transformation of the financial statements in accordance with IFRS”
Last week (April 12-13 ) the Deloitte Academy held an open seminar on a subject «Transformation of the financial statements in accordance with IFRS».
The seminar was held with the support and in the territory of Edinburgh Business School (EBS) in Ukraine. We would like to express our gratitude to all seminar visitors and EBS team for the friendly and hospitable atmosphere during these two days.
The main purposes of the seminar were as follows:
- To give clear and complex understanding of the main stages of the IFRS transition process;
- To point out the most complicated issues that (based on our experience) may cause considerable delays in the IFRS transition process;
- To outline the basics of the IFRS 1 “First-time adoption of IFRSs”;
- To give structured understanding of the core transformation stages; and
- To analyze the most common transformation adjustments
And all this information was squeezed into 4.5 hours. To be honest we admit that amount of the materials we wanted to share with our audience required much more time. Therefore, the seminar lasted more than 5.5 hours during which we covered the following questions:
- Legislative regulation of transition to IFRS in Ukraine;
- Transition to IFRS: main stages;
- IFRS 1 “First-time adoption of IFRSs”;
- Transformation technics;
- IFRS and UAS. Differences. Are they substantial?
- Analysis of the most common transformation adjustments:
- Accrual method;
- Fixed assets;
- Provisions and contingent liabilities
- Deferred tax;
- Accounts receivable;
- Related parties;
- Financial expenses.
Certainly, it is impossible to become a real specialist in IFRS in 4.5 or 5.5 hours, however we believe that this amount of time is enough to get an idea about the scale of the IFRS transformation project to correctly understand the projects` purposes, to assess its duration and to determine resources necessary for its implementation.
From our experience, the most common mistakes posing threat to the successful implementation of the IFRS transition project are: underestimation of the project time frame and underestimation of its scale.
Transition to IFRS is a project that concerns not only the finance department, but it is the project that demands changes in many business processes,; choice of a software, development of the accounting methodology, professional development of the personnel.
In addition, the implementation of the IFRS transformation requires a lot of time to become familiar with the requirements of IFRSs, to decide on the date of transition, to select optional exemptions given by IFRS 1 to be applied at transition to IFRS and to determine the accounting policies that assure fair presentation of the financial information of the entity.
Proceeding with the topic of this seminar, we invite all participants interested in deeper understanding of transformation technics, getting practical experience in usage of transformation tables and solidification of theoretical knowledge through solving a complex task at a one-day work-shop.
More information about the work-shop is available on Deloitte Academy web-page, section ‘Training sessions program’.
Looking forward to seeing you at our future seminars.