Close & reporting
IFRS conversion
Books converted between FRS 102, FRS 105 and UK-adopted IFRS for UK companies that report to an overseas parent, an investor or a lender expecting a different framework than the one the business currently uses, with a memo documenting every adjustment along the way.
Management report
Illustrative client · August 2026
GBP
| 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 UK company might need a different framework
A UK subsidiary of an overseas parent, or a company preparing for outside investment, is often asked to report on UK-adopted IFRS even though its own statutory accounts run on FRS 102 or FRS 105. Rather than keeping two sets of books by hand, we build a conversion that reconciles the two on a schedule.
What's involved
- Line-by-line reconciliation between the company's FRS basis and UK-adopted IFRS balances
- Adjustments for the areas where the two frameworks diverge most, including revenue timing and leases
- An opening IFRS balance sheet where the conversion is a first-time adoption
- A conversion memo documenting every adjustment and the basis for it
- A refreshed reconciliation each period as new transactions come through
Timed around the FRS 102 changes
The FRC's Periodic Review 2024 amendments narrow some of the gap between FRS 102 and UK-adopted IFRS on revenue recognition and leases, taking effect for periods starting on or after 1 January 2026. We build the conversion memo to reflect whichever version of FRS 102 applies to your accounting period.
Where this stops
We prepare the converted books and the supporting memo. Any formal attest work on those numbers sits with a licensed audit firm you engage separately, never with Finbryn, and we say so plainly rather than blurring the line.
Delivery
Reviewed by a senior reviewer, and delivered alongside the Xero, QuickBooks Online or Sage file that already holds your primary books.
Questions
Frequently asked questions: IFRS conversion
Why would a UK company need IFRS books alongside FRS 102?
Usually because an overseas parent, an investor or a lender outside the UK expects IFRS reporting, or the business is preparing for a cross-border transaction.
How often is the conversion memo refreshed?
Each period, as new transactions come through, so the reconciliation never falls more than a month behind.
Does the FRS 102 Periodic Review change how far the conversion has to go?
It narrows some of the gap on revenue recognition and leases for periods starting on or after 1 January 2026, and we build the memo to reflect whichever version of FRS 102 applies.
Does an IFRS conversion memo need updating every year?
Yes, the memo is refreshed whenever a new contract, lease or standard update changes how a transaction should be treated, since a memo describing last year's revenue arrangements can misstate this year's figures if the underlying contracts have changed materially.
Can the same books support both FRS 102 statutory accounts and an IFRS-basis report for a parent company?
Yes, we maintain the FRS 102 figures for your UK statutory filing and a parallel IFRS-adjusted view for group reporting where a parent company needs one, with the differences between the two documented so neither set of figures is a mystery to the other reader.
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.
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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.