Close & reporting
US GAAP conversion
Finbryn converts an EU entity's local GAAP or IFRS books onto US GAAP for groups with a US parent or a US investor, building an opening balance sheet, documenting every adjustment line by line, and recording accruals and deferrals going forward with a conversion memo your US parent's team can follow.
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 an EU entity might need US GAAP books
A company incorporated in a member state and reporting locally under IFRS or a national GAAP can still need US GAAP financials, most often because the group's parent is headquartered in the United States and consolidates its worldwide subsidiaries under US GAAP, or because a US-based investor's fund reports on that basis.
What the conversion involves
We take the entity's existing IFRS or local-GAAP trial balance and build the reconciling adjustments needed to restate it on a US GAAP accrual basis, covering the areas where the frameworks diverge most: revenue recognition timing, lease accounting, and certain provisions and reserves. Every adjustment is documented in a conversion memo, so the parent's finance team or its auditor can trace each figure back to the local number and the adjustment applied.
Two areas that need the most care
Lease accounting is usually the most visible difference: IFRS 16 puts nearly all leases on the balance sheet in a single model, while US GAAP's ASC 842 keeps an operating-and-finance split that changes how the expense is presented. Revenue recognition under IFRS 15 and its US GAAP counterpart, ASC 606, converged significantly, but specific contract structures still need checking line by line.
Keeping local reporting intact
Converting to US GAAP for group reporting does not replace your local statutory accounts. Those stay on local GAAP or IFRS and remain certified by your appointed local accountant; the US GAAP conversion sits alongside them purely for the parent's consolidation.
Related work
A business converting for a US parent will usually also need consolidations if it has more than one EU entity, and the schedules from lease accounting and revenue recognition feed directly into the conversion.
Questions
Frequently asked questions: US GAAP conversion
Does converting to US GAAP change our local statutory accounts?
No. Local statutory accounts stay on local GAAP or IFRS and remain certified by your appointed local accountant; the US GAAP conversion is a separate reporting layer for the parent's consolidation.
What is the biggest adjustment you usually see?
Lease accounting is typically the largest, since IFRS 16 and US GAAP's ASC 842 classify and present leases differently even though both bring most leases onto the balance sheet.
Do you certify the converted numbers the way an auditor would?
No. We prepare the converted books and the conversion memo; any attest or audit work sits with a qualified audit firm, not with our preparation team.
Does US GAAP conversion require re-doing our bookkeeping from scratch?
No, the conversion is built as an adjustment layer on top of your existing local GAAP or IFRS for SMEs books, not a rebuild of the underlying transactions your monthly close already produces. We would rather build on what already exists than duplicate work unnecessarily.
How often does the conversion need to be refreshed once set up?
The adjustment schedule is refreshed at each close alongside your regular reporting, since new transactions each month can carry their own conversion adjustments that need rolling forward with the rest of the numbers. We flag it as part of the normal close rather than as a separate extra task.
Why would a small business need US GAAP if cash basis is simpler?
A lender, an investor or an acquirer will often require accrual financials, and some specifically expect US GAAP before they will rely on the numbers.
Does converting to US GAAP mean giving up cash-basis reporting?
No. Many businesses keep a cash-basis view for tax purposes while their management books run on a US GAAP accrual basis.
How is uS GAAP conversion priced?
Pricing for uS GAAP conversion depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
What software works with uS GAAP conversion?
US GAAP conversion runs inside QuickBooks Online or Xero, 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.
Related services
- Close & reportingRevenue recognition (ASC 606 / IFRS 15)Revenue recorded when it is actually earned rather than when cash lands, following the five-step model shared by ASC 606 and IFRS 15, so recurring and multi-part contracts are accounted for correctly.
- Close & reportingLease accounting (ASC 842 / IFRS 16)Operating and finance leases brought onto the balance sheet as a right-of-use asset and a lease liability, in line with ASC 842 and IFRS 16, with monthly amortization tracked going forward.
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.