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What is Technical Accounting Advisory Services?
Technical accounting advisory services provide specialized expertise to help companies navigate complex accounting issues, GAAP conversions, financial restatements for transactions or for IPO, comply with accounting standards under different accounting frameworks viz. IFRS, Ind AS, US GAAP, Indian GAAP etc. These services are designed to extend help to accounts and finance team of corporate clients in their financial reporting and to ensure true and fair financial reporting.
Complex accounting issues may include GAAP conversion, financial restatements, financial consolidation of subsidiaries, joint ventures and associates located in different countries with different functional currencies, accounting for share based payments (ESOPS) and group share based payments (with cash alternatives etc.), lease accounting in the books of lessee, hedge accounting, ECL modelling and accounting, accounting for mergers and acquisitions, common control accounting and many more other areas.
Accounting services may include actual implementation / execution of work along with the accounts and finance team, review of the work executed by the team, audit support, preparation of an accounting memo to explain the position taken by the client etc.
Our founder partners and team have extensive exposure in accounting advisory services with more than 55 years of collective experience of working with multinational client companies both in and outside India.
Who can benefit from Technical Accounting Advisory Services?
Entities / companies of all sizes and across various industries can benefit, including:
- Publicly listed entities
- Private Companies
- Start-ups and SMEs
- Financial Institutions
- Manufacturing and Service Providers
- Healthcare and Technology Firms
- Non-Profit Organizations
Can you help clients with the adoption of new accounting standards?
Yes, we assist companies in understanding and implementing new accounting standards under IFRS / Ind AS / US GAAP. For example, IFRS 15 / Ind AS 115 / ASC 606 – Revenue from contracts with customers, IFRS 16 / Ind AS 116 / ASC 842 – Leases etc. Our services include identifying differences, impact assessment, framing new accounting policies, quantification of impacts and implementation. We also ensure compliance with disclosure requirements of these standards in your financial statements.
How do you ensure compliance with IFRS/ Ind AS or US GAAP or accounting practices under other reporting standards?
We work closely with your finance and accounting teams to assess your company’s current accounting policies and practices, read contractual arrangements entered with third parties by the companies and ensure they align with the appropriate accounting standards (IFRS / Ind AS or US GAAP). We provide recommendations, develop accounting policies as per the conceptual framework and the accounting standard under the reporting framework, and assist with preparation of financial statement (separate as well as consolidated) and disclosures to ensure full compliance. We also support in audit compliances of the client.
How can you help us with implementing new revenue standard? [IFRS 16 / Ind AS 116 / ASC 842 under US GAAP (Revenue from contracts with customers)].
We help you apply the complex principles of IFRS 15 / Ind AS 115 / ASC 606 – Revenue from Contracts with Customers, including identifying performance obligations, allocating transaction prices, and recognizing revenue when or as performance obligations are satisfied. We assist our clients in the following ways:
- Summarize the critical covenants of the open revenue contracts
- Analysis of the contracts identified in ‘a’ above from perspective of IFRS 15 / Ind AS 115 / ASC 606
- Identifying impact areas with respect to following:
- Combining and segregation of contracts
- Identification of performance obligations in a contract
- Determination of transaction price; considering variable consideration, liquidated damages, incentives, discounts, rebates, rejections etc.
- Allocation of consideration over identified performance obligation using appropriate method provided by the standard
- Determining timing of revenue recognition; ‘at point’ or ‘over the period’
- Accounting treatment of contract costs to obtain and fulfil contracts
- Accounting for license fee
- Accounting for contract modification
- Evaluating first time adoption methodology
- Quantification of impacts upon conversion to IFRS 15 / Ind AS 115 / ASC 606 relating to the selected sample contracts.
- Implementing the new accounting standards for all the open contracts with accounting entry to be posted in the financial statements.
How can you help us with implementing new lease standard? [IFRS 16 / Ind AS 116 / ASC 842 under US GAAP (Leases)].
We help you to apply the complex principles of IFRS 16 / Ind AS 116 / ASC 842 – Leases, including identifying the gaps between new and old accounting standard, identifying short term lease or low value leases in the books of lessee, applying the new definition of lease and thereby identifying contracts which contains lease etc. We assist our clients in the following ways:
- Identifying the lease contracts as per the new definition of lease
- Compiling database of all existing leases
- Analysing contracts in accordance with IFRS 16 / Ind AS 116 / ASC 842
- Selecting transitional exemptions available under the respective frameworks
- Impact assessment on convergence, calculating ROU asset and Lease liability etc.
- Quantification and implementation of the new standard after finalising the transition method.
- Assist in disclosures to be provided in the financial statements
Can you help us with financial restatements?
Yes, we do help companies in financial restatements in case of errors, fraud, or changes in accounting policies. We provide support throughout the restatement process. We help identify the necessary adjustments, prepare revised financial statements, and ensure proper disclosures are made to stakeholders and regulators.
We also help in financial restatement projects necessary for DRHP and RHP for Initial Public Offerings or for other transactions. Our IPO related restatement projects cover various services like preparation of:
- Restated Consolidated Summary Statements of Assets and Liabilities, Profits and Losses, Statement of Cash Flows and SOCIE, Significant Accounting Policies, and other explanatory information
- Comply with the provisions of Section 26 of Part I of Chapter III of the Companies Act, 2013, Securities and Exchange Board of India (ICDR) Regulations etc.
How can your services improve the true and fair state of our financial reporting?
Our team of technical accounting experts has vast practical experience which can help to ensure that your financial statements are compliant with the latest accounting standards and represents true and fair position of the business. We work with your finance team to address any accounting complexities, apply the correct treatment for unusual transactions, and provide recommendations to improve financial statement clarity and transparency. We also provide technical accounting memo to represent management view to the auditors and other stakeholders.
How do you support companies during audits?
We assist companies during the audit process by:
- Preparing audit-ready financial statements and working papers.
- Addressing complex accounting issues that may arise during the audit through discussions of written accounting memo.
- Liaising with external auditors to clarify accounting treatments.
- Helping resolve audit findings and ensuring proper adjustments are made.
What are the costs of your Technical Accounting Advisory Services?
The cost of our services varies based on the scope and complexity of your accounting needs. We offer customized solutions tailored to your specific requirements, whether you need assistance with a single accounting issue or ongoing technical advisory support.
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