Close & reporting
IFRS conversion
Finbryn converts an EU entity's local GAAP books to IFRS or IFRS for SMEs, or builds IFRS books directly, for businesses that report to a group parent, an investor or a cross-border acquirer expecting IFRS-format statements, reconciling every material difference line by line.
Management report
Illustrative client · August 2026
EUR
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Why a local-GAAP entity still needs IFRS books
Local GAAP in most member states works well for a standalone entity filing its own statutory accounts. It stops being enough the moment that entity is part of a group reporting under IFRS, is preparing for a sale to an acquirer that expects IFRS-format statements, or is raising capital from an investor whose fund reports on an IFRS basis.
Where local GAAP and IFRS actually diverge
The gap between a national GAAP and IFRS varies by member state, but the areas that come up most often are revenue recognition timing for multi-part contracts, lease accounting under IFRS 16, provisions and contingent liabilities, and the valuation basis used for certain financial instruments. We check each of these line by line against the entity's actual transactions rather than applying a generic adjustment.
How the conversion is documented
Every reconciling adjustment between local GAAP and IFRS gets recorded with its basis, so a parent's finance team or an acquirer's due-diligence team can trace each number back to the underlying local figure. Where the conversion is a first-time adoption of IFRS, we build a full opening IFRS balance sheet with the transition adjustments documented separately.
What stays outside our role
We prepare the converted books and the supporting reconciliation. Statutory certification of the original local-GAAP accounts stays with your appointed local accountant, and any attest or audit work on the IFRS statements stays with a qualified audit firm.
Related services
An entity converting to IFRS for a group parent based in the United States may instead, or in addition, need US GAAP conversion, and a group with entities in several member states will typically need consolidation once the IFRS books are in place across entities.
Questions
Frequently asked questions: IFRS conversion
Do we have to give up our local GAAP statutory accounts to report under IFRS?
No. Your local statutory accounts stay in the local GAAP required by your member state and remain certified by your appointed local accountant; the IFRS conversion is an additional reporting layer for the group.
What is the most common adjustment between local GAAP and IFRS?
Lease accounting and revenue recognition timing come up most often, though the specific areas of divergence vary by which member state's GAAP is the starting point.
Can you maintain both local GAAP and IFRS books at the same time?
Yes. Many groups need both views running in parallel, and we keep the two sets reconciled to each other rather than treating one as a one-off project.
Which IFRS for SMEs areas typically need the most conversion work?
Revenue recognition timing, lease treatment and financial instrument classification tend to need the most adjustment when moving from a local GAAP presentation, depending heavily on your specific business model and contract structures. We would rather flag the specific area early than surprise you at year end.
Can we present under IFRS for one investor while keeping local GAAP for filing?
Yes, that is the most common setup: local GAAP or a member state's national standard for the statutory filing, and an IFRS-adjusted set of figures maintained alongside it for investor or group reporting. We confirm which set of figures each audience actually needs before building either one.
Why would a US business need IFRS books?
Usually because a foreign parent, investor or lender outside the United States requires IFRS reporting, or the business is preparing for a cross-border transaction.
Do you sign off on the IFRS conversion as an auditor would?
No. We prepare the converted books and the supporting memo; any attest or audit work sits with a qualified audit firm.
What software works with iFRS conversion?
IFRS conversion runs inside NetSuite or Sage Intacct, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
How do we get started with iFRS conversion?
Getting started with iFRS conversion begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
Related services
- Close & reportingUS GAAP conversionBooks moved from cash basis or another framework onto US GAAP accrual accounting, with every adjustment documented so a lender, investor or auditor can follow the trail.
- Close & reportingConsolidationsMultiple entities, locations or subsidiaries combined into one consolidated set of financials, with intercompany balances eliminated while each entity still reports on its own.
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.