FRS 102 to IFRS - Transition paper

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Gman
Posts: 9
Joined: 28 Oct 2021, 15:23

FRS 102 to IFRS - Transition paper

Post by Gman »

Hi,
Hope you guys can help.

We are in the process of moving from FRS102 to IFRS.

Our auditors are stating a Transition/Position paper is required.
However they are not very forthcoming with how this paper should look and feel.

Any of you guys have any templates or experience on this subject.
Any info would be greatly appreciated.

Cheers
JRSB
Trusted Expert
Posts: 1309
Joined: 01 Mar 2020, 01:10
Location: UK

Re: FRS 102 to IFRS - Transition paper

Post by JRSB »

Yes you would look at your financial statements almost line-by line and pick out differences, then assess. Eg revenue, IFRS uses a 5-step, given our contracts new revneue would like x, y, z based on our performance obligations, etc Having identified it, then calculate the impacts in a supporting working.

Repeat again for leases, credit losses, goodwill, and whatever else you have in your P&L/balance sheet.

Auditors will particularly like specific IFRS references supporting their conclusions.

Also include an assessment of the transitional disclosures with workings, eg restatement and transition note.
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: FRS 102 to IFRS - Transition paper

Post by Leo »

I used a excel driver file with on the left column the consolidated trial balance of the group under current GAAP, every IFRS impacts (restatements) in columns in the middle, and on the right colum, the trial balance of IFRS restated figures. It's a bridge.

And every number in the bridge in the middle are linked to a specific work paper in excel as well.

This is the practical side.

On the assessment of impacts from Local GAAP to IFRS, you can start from the balance sheet :
- Intangible assets IAS38 - capitalisation of developpement costs
- Clients (IFRS9 - ECL, depreciation based on statistics whether than occured)
etc...

and than go to P&L etc...

Or

you might look at some publications from PWC or EY for example, Good group on first time applications. this should give you plenty of ideas on the possible impacts.

Also, starting to work on the disclosures in the financial report as early as possible, because auditors are really going to spend a lot of time on it.

And you can always come here and ask to the experts, they've been more than helpful !
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