Our specialists know from experience what the pros and cons are of switching from the Belgian GAAP regulations to the new European IFRS (International Financial Reporting Standards) - which have been obligatory for all listed companies in the European Union since 2005. It should be noted, however, that the new standards also offer specific advantages to non-listed companies or SMEs. Of course, this is only as long as the costs - administrative ones, but also the cost of being more ‘open’ towards the competition - don’t outweigh the benefits. More than enough reasons to do the maths together.
From the outset, it’s worth remembering that banks and prospective acquiring companies will consider a business already making use of IFRS as a modern organisation that takes its financial reporting seriously. Does your business have branches in multiple countries? If it does, it’s only convenient if uniform principles are applied to each of their annual accounts. Additionally, if your ‘takeovers’ also use IFRS it’s easy to include them in your group’s reporting system.
Is your company already making use of IFRS standards? If so, should you run into any highly-complex transactions and operations our experts will always be at your service, from exploratory investigations with regard to highly specific issues to preparing your Board of Directors for the transition to IFRS.
Customised, pragmatic and international
As you would expect, switching to IFRS isn’t a procedure that can be completed at the snap of a finger. The multidisciplinary teams at BDO have developed a robust yet pragmatic method that can be rolled out flexibly and step-by-step, tailored to your business and operational capacity. In this way, we can map out the entire procedure and provide you concrete assistance in setting down:
- IFRS valuation rules;
- IFRS reporting volumes;
- the presentation of financial statements.
To guarantee the smoothest transition possible, our specialists have also designed a number of tools on which your financial team can base their activities. These include:
- a template IFRS annual account;
- a template IFRS accounting manual.
It’s evident: we don’t present ‘off the rack’ advice. Instead, our advice is based on a thorough analysis of the applicable do’s and don’ts, any obstacles facing your business and the impact on your KPIs. With our European network we are able to roll out IFRS at all your branches, in line with your financial strategy. Transfer of knowledge takes precedence to allow your financial department(s) to work further autonomously. Of course, in doing so we are actually rendering ourselves superfluous in the long term - but only if that’s what you want.