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KSA IFRS CONVERSION
www.hyphenconsultancy.com
IFRS CONVERSION PARTNER
BACKGROUNDIn 2013, SOCPA approved an IFRS convergence plan by which listed entities other than banks and insurance companies would be required to report under SOCPA standards from January 1, 2017 and SMEs’ by January 01,2018, that will be IFRSs with some modifications – “IFRS as adopted in Saudi Arabia”.
IFRS in Saudi Arabia will be similar to the standards issued by the IASB with possible modifications in three respects:
• Adding more disclosure requirements• Removing optional treatments; and • Amending the requirements that contradict Shariah or local law, taking
in consideration level of technical and professional preparedness in the Kingdom
The IFRS transition is part of a project called “SOCPA project for transition to International Accounting and Auditing Standards”.
TIME LINES
Now is the time!All SMEs’ are required to be IFRS compliant in 2018.
It entails a thorough and robust planning as a Company who is required to adopt IFRS – from 1 January 2018, requires comparative financial information for the year ended 31 December 2017 and an opening balance sheet at 1 January 2017.
www.hyphenconsultancy.com
IFRS CONVERSION PARTNER
Although the end result is the preparation of uniform and transparent financial information for shareholders, investors and all other stakeholders; the process does impact various business domains.
Some of the examples are
• Generation of required data will test the capability and flexibility of the systems.e.g. component based fixed asset accounting
• Changes in revenue recognition principles require adaptation with culture, sales processes, contract management, performance management and technology solutions.
• Strong coordination between Finance and Contract management teams to understand the implications of lease accounting.
• Development of additional controls within the processes to ensure accurate reporting under the IFRS
• Changes in processes across the entire value chain
IFRS TRANSITIONIS IT JUST AN ACCOUNTING JOURNEY?
OUR 3-STEP APPROACH
Identification of all the difference between current accounting practices and IFRS
• Accounting policy and strategic choices
• Gap analysis between information required and what is available
• Engage organization wide stakeholders and top management
• Develop and communicate the roadmap and activity plan with responsibilities
• Gather data• Prepare IFRS compliant
financial statements
• Updated policies, processes and systems
• Training to all relevant
DIAGNOSE CONVERT EMBED
www.hyphenconsultancy.com
IFRS CONVERSION PARTNER
HOW CAN WE HELP?• A general understanding of IFRS standards, and analysis of first time adoption
options under IFRS 1 • Preliminary diagnostic analysis / impact assessment and recommendations • Compliance review in the context of legal regulations pertaining to reporting to
supervisory authorities • Support in implementing the new accounting standards, detailed research on
specific issues and development of accounting policies • Assessment of data collection, controls and IT system processes and redesign of
new processes • Preparation/review of skeleton accounts and financial statement disclosures
including transition notes • Development of an IFRS adoption project plan • Communication of the impacts of the conversion to IFRS to stakeholders (analysts,
regulators, funders and owners/ shareholders) and understand the impacts of changes on KPIs
• IFRS Training
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www.hyphenconsultancy.com
IFRS CONVERSION PARTNER
WHY US?Successful delivery – The team has successfully delivered for listed and Non listed clients across various industries in the Kingdom. The key to seamless transition has been a strong client engagement and a culture of customer service within an organization
Diversity - Core leadership team have an experience of working in Assurance, Financial Reporting and Accounting advisory roles.
They have not only extensively worked in the IFRS environment in various countries but also within Big 4 in Saudi Arabia. Also, have an experience of working with organizations in their IFRS transition phase.
The expertise in various sectors including Oil & Gas, Telecom, Services, Contracting, Petrochemical and manufacturing means that the complex accounting issues will always be professionally dealt with.
Project Management – With the experience of handling various projects amicably including SOX 404 implementation, Finance Transformation and IFRS implementations to name a few, we are well poised for seamless delivery.
Tools & Resources – Our biggest strength is our resources who have wealth of experience in IFRS application. Their knowledge and industry insights means that only the best will be delivered. On top of that we have the rights tools available to manage the transitions process in an efficient way and ensure that there are no surprises
Poised to add value – Not only we consider this as a transition of financial reporting but also an opportunity to devise policies, processes, technology and controls to reshape the way business is run. With our extensive experience in the domains of finance process improvement and Internal Controls we make sure that a sound platform is made available to the clients.
www.hyphenconsultancy.com
IFRS CONVERSION PARTNER
Our Proposed Modes of Engagement
COMPLETE SET OF DELIVERABLES1. Completely filled IFRS compliance checklist for the audit trail2. Gap analysis for management3. Summary of Assets and liabilities to be recognized4. Summary of Assets and liabilities to be derecognized5. Summary of Financial statement components which need to be re-measured
6. Skeleton Accounts7. Paper on Accounting policy choices8. Schedule of information required to prepare IFRS complaint financial statement9. Review & validation report on IFRS Financial Statements
i. Opening Balance Sheet Jan 01, 2017ii. Financial Year 2017iii. Financial Year 2018
10. Accounting policies11. Training material & workshop12. Documented procedures (where applicable) to produce required infirmation for IFRS
based financial statements
DIAGNOSE
CONVERT
EMBED
High
High Time Availability
Low
Low
Complete Conversion Consulting Engagement
Complete Conversion Consulting Engagement
GAP Report Between SOCPA & IFRS (Generic)
Diagnostic + Conversion
Low Budget
Medium to High Budget
Diagnostic + Conversion + Embed
Company specific gap report/complete Conversion consulting engagement
IFRS Knowledge
www.hyphenconsultancy.com
IFRS CONVERSION PARTNER
OUR TEAM
MUHAMMAD FAHEEM PIRACHAIFRS Conversion LeaderFCA,CIMA (UK)Ex Big 418 years of experienceSector specialist – Telecom, Oil& Gas, Services & Public [email protected]+92 345 8503314
KHAWAJA TASNEEM MURADIFRS - Subject Matter SpecialistFCAEx Big 4 23 years of experienceSector specialist – Petro chemical,Manufacturing & Contracting
MUHAMAMD EZAZ UL HAQIFRS Project ManagerACAEx Big 4
Our core values are: Openness, Honesty and Balance. These three values are guidingprinciples to management and staff. They are what drive us to achieve excellence forour clients, and improve the lives of people.
www.hyphenconsultancy.com
+92 345 8503314
