IFRS conversion

IFRS conversion covers a line-by-line reconciliation between your US GAAP balances and the corresponding IFRS balances, adjustments for the specific areas where the two frameworks diverge, including lease accounting, inventory costing and any revenue timing differences that apply to your contracts, and a conversion memo documenting each adjustment and its basis. Where the conversion is a first-time IFRS adoption, an opening IFRS balance sheet with transition adjustments is built separately from ongoing activity.

The exact scope, including whether you need one-time reconciliation or ongoing parallel IFRS reporting alongside your US GAAP books, is agreed and set out in writing before work starts.

We start from your existing US GAAP financials and work through each area where the frameworks can diverge: leases, inventory costing, revenue recognition on non-standard contracts, impairment testing and financial instrument classification, checking each one against your actual transactions rather than assuming a difference exists where it does not.

Where a genuine difference is found, we calculate the IFRS-basis adjustment, document the reconciling entry from the US GAAP starting figure to the IFRS result, and record the basis for the adjustment in the conversion memo. The reconciled IFRS financials and the memo are reviewed by a senior reviewer before delivery, so the reasoning behind every adjustment is checked before it reaches you or your parent company's finance team.

A US subsidiary of a foreign parent that consolidates under IFRS and needs the US entity's numbers translated into that framework each period. A US company raising capital from or being acquired by an overseas investor or strategic buyer that expects IFRS-format financials as part of its own diligence and reporting process. A US company with meaningful international operations that wants to understand, before a transaction happens, how different its numbers would look under IFRS versus the US GAAP basis it already reports on.

The most frequent issue is a company using LIFO for US tax and GAAP purposes that has never calculated what its inventory and cost of goods sold would look like restated to a method IFRS permits, which becomes a scramble once a parent company or acquirer asks for it on short notice. We build that restatement calculation and keep it current rather than treating it as a one-time fire drill.

We also frequently find lease expense presented the same way under both frameworks by default, when IFRS 16's single right-of-use model and ASC 842's operating and finance lease split actually produce different income statement patterns even from the same underlying lease liability, which needs a specific reclassification rather than a simple relabeling.

IFRS conversion work runs from whatever general ledger already holds your US GAAP books, most often NetSuite or Sage Intacct for companies with a foreign parent's reporting requirements built into their close process, or QuickBooks Online for smaller subsidiaries. The reconciliation itself, tracking each adjustment from US GAAP to IFRS, is typically built and maintained in Google Sheets or Excel, since most general ledgers do not natively run two full sets of books in parallel.

An IFRS conversion is scoped and priced as its own project, separate from the ongoing bookkeeping and close tiers at /us/pricing, because the amount of reconciliation work depends heavily on how many areas of genuine divergence exist in your specific business, inventory-heavy manufacturers typically need more work than a services business with few leases and no inventory. Ongoing parallel IFRS reporting, once the initial reconciliation is built, is priced based on how many periods per year need a refreshed reconciliation.

Many businesses that need IFRS financials still have to keep filing and reporting under US GAAP for domestic lenders, US-based investors or their own tax position. We build the reconciliation to be maintained period over period rather than as a one-time translation, so both sets of books stay usable and reconcilable to each other going forward instead of the IFRS version drifting out of date after the first delivery.