Sovereign Wealth Funds

The firm’s client, a sovereign wealth fund in the UAE, acquired another group and needed to align the financial reporting process.
 

The challenge included differences in accounting policies and an absence of integrated chart of accounts (CoA) to capture and reflect all required transactions, e.g. intercompany accounts and related parties, specific banking transactions.
 

KPMG conducted a gap assessment performed of the two groups’ accounting policies for consolidation purposes, releasing a consolidated accounting policy.

KPMG assisted in the accounting for the acquisition and consolidation of the two entities under IFRS 10 ‘Control Assessment’. We also performed intra-group transactions and balances analysis basis information received from the entities and captured related intra-group adjustment guidance.

The firm’s client, a holding company of a leading SWF, sought to comply with various reporting requirements, externally and internally. To achieve this, our client had to develop and implement a sound financial reporting system, process and framework.
The client requested KPMG’s assistance in preparing an opening balance sheet, including:

• Mapping subsidiary financial statements assessment of controls
• Setting up the financial close calendar
• Establishing IFRS 8 segment reporting framework and templates
• Establishing group accounting policies

KPMG approached each challenge by reviewing subsidiaries’ financial statements, identifying differences in accounting policies between subsidiaries, establishing accounting policies capable of aligning with those of the subsidiaries, performed mapping of subsidiaries’ financial statements, developing a financial statement framework (balance sheet and related schedules), and developing a consolidation excel-based tool.