IFRS and accounting advisory services

The IASB’s efforts to converge accounting requirements across a number of key topics is driving significant changes in IFRS. These changes can impact the way companies conduct business and track and measure their main performance indicators.

• Recent significant changes to IFRS
• Revenue from contracts with customers (IFRS 15)
• Financial instruments (IFRS 9)
• Leases (IFRS 16)
• Forthcoming significant changes
• Insurance contracts (IFRS 17)

KPMG’s accounting advisory team can assist you in implementing new IFRS standards. Our experts can provide timely advice on the impact of accounting changes, assist you in developing a practicable implementation roadmap and conduct technical training sessions to provide your team with the knowledge required for the successful implementation of the new standards.

We understand that the pace of all these changes is swift, the volume is significant, and it can be challenging to keep up with all the requirements and the potential impacts. KPMG’s accounting advisory team works with you to help you understand the potential implications of changes in accounting policies, so that you can make important business decisions.

Have you conducted a purchase price allocation in accordance with accounting standards? Have you identified all intangible assets to be recognised separately in the purchase price allocation? Do you know what the acquiree’s income statement and balance sheet will look like after the application of your company’s accounting policies?

Accounting for a business combination may be a complex and time-consuming task. The decisions and estimates made may have a bearing on the company’s accounts for decades to come and it is therefore imperative for the company to have them made promptly and to the maximum benefit of the company.

KPMG’s accounting advisory function is composed of experienced professionals who can assist you in compiling a purchase price allocation. 

Several financial indicators in a company’s financial statements are based on management estimates:

• write-downs of receivables and inventories;
• useful lives of property, plant and equipment and intangible assets;
• estimation of the value of assets recognised at fair value;
• recognition of provisions;
• impairment testing.

Management estimates thus play a key part in reliable financial reporting. Making accounting estimates is, however, a complex and time-consuming process. The main challenge lies not in accumulating the data to form the basis for the estimates but in the preparation of accounting estimates in compliance with accounting standards.

KPMG’s accounting advisory professionals can advise and assist you in the preparation of accounting estimates.

KPMG’s accounting advisory team assists companies in improving data quality, shortening the record-to-report cycle and streamlining workflows. Quality close and reporting contribute to a fast and sustainable closing and reporting process for internal and external reporting.

We help you maintain an efficient closing process. By shortening the accounting period, you can reduce costs and free up resources to focus on value-added activities. A shorter close cycle can also help the management perform timely analysis and speed up management decisions. 

Accounting errors and misinterpretations, as well as voluntary changes in accounting policies all require retrospective restatement. Retrospective restatement is a process that requires in-depth research and analysis and excessive data collection – a process that calls for fast and efficient action while maintaining the day-to-day running of the business.

KPMG’s accounting advisory team is composed of experienced professionals who can help you solve challenging accounting issues. Based on our expertise and experience, we can provide the support you need in correcting accounting errors and applying new accounting policies.

KPMG’s accounting advisory team offers a structured approach to help your company ensure a seamless transition from the Estonian financial reporting standard to IFRS.

Our advisers have extensive knowledge of financial reporting and wide-ranging experience in supporting companies across industries on their way through the IFRS transition. They combine in-depth technical expertise with advisory skills to help companies manage the transition process with maximum efficiency.

For the majority of companies, transition to IFRS is a one-time change which they have never experienced in the past and probably will not in the future. Our clients can benefit from our unique experience as we have advised many companies undergoing the transition. We can provide all the support necessary, and anticipate potential challenges, in assisting companies to make the transition to the IFRS as smoothly and efficiently as possible.

The adoption of IFRS brings a number of potential benefits including:

• greater transparency makes the company more attractive for new investors and creditors;
• the adoption of international accounting standards helps to build trust beyond the local market and contribute to international expansion;
• improved financial expertise, opening up new prospects for international cooperation;
• increase in the company’s reputation;
• enhanced international comparability;
• potential positive effect on the company’s net assets.