IFRS reporting packs for US subsidiaries of foreign parents

The pack follows your parent's template, so the layout is not ours to choose. What we control is the quality of what feeds it.

• US books and close. Reconciled bank, card and loan accounts, accruals, prepaids and fixed assets, closed to a trial balance by your agreed day.
• The US GAAP-to-IFRS bridge. One schedule showing each adjustment between the US trial balance and the IFRS figures the parent receives, with the workings behind it and a note on anything that moved from last month.
• The parent's template. Income statement, balance sheet, cash flow and the supplementary schedules your group asks for, populated from the bridge.
• Intercompany reconciliation. Balances and flows with the parent and sister companies agreed in both currencies where relevant, with open items listed by counterparty and age.
• Variance commentary. A short written explanation of each line the group will query, drafted for your controller to edit.

When the group changes its template mid-year, we map the new version to the existing bridge and tell you which lines are affected before the next close.

Which differences matter depends on your business. These are the ones that tend to produce a recurring monthly adjustment for a US subsidiary.

• Leases. IFRS 16 puts nearly every lease on the balance sheet under a single right-of-use model. ASC 842 keeps the operating and finance lease split, so an operating lease carries one straight-line lease cost, while IFRS 16 records depreciation and interest, which front-loads expense and changes the right-of-use asset. The bridge remeasures each lease and records the income statement and balance sheet difference each month.
• Revenue. IFRS 15 and ASC 606 share the same five-step model, so most contracts need no adjustment. Where a contract has specific terms, a bridge line records the difference and the contract that causes it.
• Financial assets. IFRS 9 expected credit loss impairment can differ from the current expected credit loss model in ASC 326, which affects receivables and loans to group companies.
• Deferred tax. IAS 12 recognizes a deferred tax asset only to the extent recovery is probable, where ASC 740 records it in full and then a valuation allowance, and every other bridge adjustment carries its own deferred tax effect.
• Employee benefits. IAS 19 and ASC 715 measure defined benefit cost differently (net interest on the net liability, remeasurements kept in other comprehensive income, past service cost expensed at once). The figures come from the plan's actuary; we carry them into the bridge.

We test each area against your real contracts and balances before assuming a difference exists. A line with no adjustment is documented as tested and unchanged.

IFRS conversion is a project. We restate the books once, build an opening IFRS balance sheet if the company is adopting IFRS for the first time, and hand over a memo. It ends.

Consolidation is a different task again: combining several entities into one set of statements, usually for a group headed in the US.

A reporting pack is neither. It is a process that repeats on the parent's calendar, feeds the parent's consolidation and has to hold up to the group auditor's testing. So the deliverable is a monthly routine: one bridge, one template and one reconciliation, produced in the same order each month and kept in a form the group auditor can follow from the pack back to the US ledger.

Where a company needs both, we scope the conversion project first and the monthly pack after it. Our consolidation service and lease accounting page cover the adjacent pieces.

A group auditor does not audit the subsidiary the way a local auditor would. They give instructions to a component auditor or ask the subsidiary for specific schedules, and they expect an answer in their timetable, not the subsidiary's.

We prepare what those requests ask for: the bridge workings with source references, lease and revenue schedules, intercompany confirmations, trial balance support and the reconciliations behind each balance. Requests are logged by number and date, so your controller can see which are answered and which are open.

We do not perform the audit, comment on the group auditor's opinion or speak for your company on judgments. If the group auditor wants to discuss an estimate or a policy, that conversation is between them and your finance lead. Where your company also needs a standalone US audit (for a lender, say) or a tax return, those are performed and signed by independent professionals you engage separately.