For all companies, it is important to document the impact analysis that identifies which areas are affected and those which are not, both for internal purposes and as a basis for the auditor’s review of the IFRS conversion. Regardless of quantitative impact, preparing financial statements in accordance with IFRS requires all companies to present more extensive disclosures compared to Swedish GAAP.

Further, applying IFRS requires IFRS competency within the accounting department, the allocation of sufficient time and resources, and that the high impact areas requiring further investigation are identified at an early stage of the process. Typical areas of impact include the recognition of most lease contracts on the balance sheet, that goodwill is not amortized, restatement of purchase price allocations, and that qualifying financial instruments shall be measured at fair value.

At Fenix Advisory, we have extensive experience of supporting clients with IFRS conversions. We tailor company-specific solutions and can take project lead or be a sounding board with which to discuss specific issues, based on your prerequisites. Since we are independent from audit firms, we can support clients through the whole conversion process; from impact analysis to calculating quantitative effects and implementation. The following bullets describe a typical conversion project.

Project structure IFRS conversion

• Usually starts with the preparation of an impact analysis in which all areas that may be affected are analyzed and documented
• Deep-dive into, and documentation (including potential quantification) of, the high impact areas
• Preparing annual and interim reports including disclosures, accounting policies and a bridge note between previous accounting principles (typically Swedish GAAP K3) to IFRS

At Fenix Advisory, we assist you to the desired degree, ranging from establishing a project structure and provide support throughout the process to completing the whole IFRS conversion with a minimum of input from you. Everything we do is entirely based on your needs.

We can also provide training for your employees and help with the procurement of systems such as lease calculation tools or map the IFRS annual report template against the chart of accounts of the group companies.