International Financial Reporting

The International Financial Reporting Standards (IFRS) have been required to be applied to all publicly traded companies in Europe since 1 January 2005. Even for companies which are not publicly traded it might be a competitive advantage to prepare their annual financial statements or consolidated financial statements according to IFRS. The objective of applying a single set of high-quality international accounting standards is to create more transparency for investors and stakeholders, as they lead to a better reliability and comparability of the financial statements. The IFRS are internationally accepted, and their application facilitates the companies' access to the international capital market. Capital costs may be reduced, which is a competitive advantage.

The importance of financial reporting according to IFRS is increasing due to the closer international interlacing even of companies which are not publicly traded. Not only international investors, but also foreign banks frequently demand investment reporting under adoption of IFRS, as they are generally less familiar with German GAAP. Furthermore, their decision-making is less based on continuing historical values but primarily on fair values, which are used as a valuation basis in the IFRS. Additionally, loan agreements often contain financial covenants, according to which certain ratios (for example loan-to-value ratio) have to be adhered to during the term of the loan. Such ratios are often determined on the basis of the financial statements prepared according to IFRS.

The adoption of IFRS is a major challenge to a company in terms of expertise and technical know-how. Additionally, the adoption of IFRS requires an integration of external accounting into internal risk reporting and management reporting systems, which enables the readers of financial statements to better evaluate the risk appetite of a company and measures to reduce these risks.

Furthermore, the importance of ratios specific for the business sector to be taken into account in addition to the reporting requirements of IFRS is increasing. The best practices recommendations issued by the European Public Real Estate Association (EPRA) are to further improve the transparency and comparability of IFRS financial statements. The implementation of these application guidelines are expected to improve the transparency of the financial statements.

Overview of our services

  • Conversion of accounting to IFRS
  • Preparation and audit of (consolidated) financial statements according to IFRS
  • Preparation and audit of IFRS reconciliations
  • Consulting in connection with specific accounting issues
  • IFRS training courses
  • Consulting in connection with the implementation of EPRA recommendations
  • Support for purchase price allocations due to company mergers

    Contact

    Diplom-Kaufmann
    Achim Schulte
    German Public Auditor

    Phone: +49 30 89 04 82 - 134
    achim.schulte(at)trinavis.com

    Trinavis GmbH & Co. KG Member Crowe Horwath International
    Trinavis GmbH & Co. KG Member Crowe Horwath International

    Diplom-Kaufmann
    Matthias Lowa
    German Public Auditor, Tax Consultant

    Phone: +49 30 89 04 82 - 182
    matthias.lowa(at)trinavis.com

    • pdf iconFact sheetInternational Financial Reporting - Trinavis GmbH & Co. KG Member Crowe Horwath International