IFRS Conversion

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Main IFRS Conversion Considerations


  • The size of efforts and IFRS skills needed in the first implementation of IFRS is far greater than the standard preparation of financial accounts.
  • Coordination is crucial between different stakeholders (management, finance/accounts, legal, IT, and auditors).
  • For IFRS, structures, protocols, policies & procedures need to be realigned.
  • Company disturbances and ongoing operations need to be reduced.

Accounting Acumen and Expert Advice Including Manual Practice


The impact of IFRS extends beyond accounting and reporting on key business decisions you make. Our financial expertise and advice reflect that, providing a mixture of technical details and expert understanding.

Our contributions to the accounting and conversion of IFRS include:

Services for Businesses that Report in line with IFRS


Our services for IFRS-compliant business reporting cover:

Our Programs for Businesses Planning to Accept IFRS


We provide assistance and guidance with regard to:

Services for IFRS Conversion Include


Assisting management in the selection of alternatives to IFRS accounting policies, such as voluntary exemptions offered by IFRS 1, the first implementation of International Financial Reporting Requirements, and assisting management in evaluating the consequences.

While converging IFRS and GAAP is the target, there are still substantial differences between the two standards:

IFRS Empowers Cross-Border Investment by Reducing Financial Costs and Reducing Barriers


IFRS introduces a common financial language that promotes and facilitates cross-border investment by reducing financial costs and reducing barriers. Using IFRS can help improve the quality, comparison, and transparency of your financial information. Using them properly will increase your company’s credibility and improve access to credit and investment opportunities.

These levels are very detailed and technical and can be difficult to navigate to the untrained eye. IFFS CFGI professionals have a thorough knowledge of their vulnerability, translating them into a language you can understand and use in your financial statements.

Large new levels of financial resources, revenue recognition, and leasing present significant challenges for financial statement planners. You will receive the latest application guidance that works for CFGI specialists. We can help you navigate through the complexity of the standards so that you can focus on your time and your efforts to run your business.

Benefits of Converting to IFRS


It enables higher comparability:

Businesses that use equivalent criteria to prepare financial statements may compare with each other more accurately. This is particularly helpful when comparing organizations located in various countries since in the preparation of these documents they can otherwise have different methodologies and laws. This higher comparability has helped investors define better where their investments can go.


For new and small investors, it is useful:

The IFRS will help new and small investors by allowing reporting requirements to provide higher quality and become easier, placing these investors in a comparable position with skilled investors, which was not possible under previous standards. It also entails a decreased risk for these investors as they trade, since they will not be tempted to take advantage of the experts and it will only be easy for others to grasp the nature of financial statements.


This allows more versatility:

Using a theory based on principles, this set of criteria would have the purpose of arriving at a fair valuation for different methods of executing tasks instead of rules. This will allow organizations the ability to follow IFRS in their individual cases, resulting in easier-to-read more valuable financial statements.


Preparing for the Implementation of IFRS


The phase of implementing IFRS shall be divided into the following three stages and Legalraasta shall include the best services used in the relevant stages.

Analysis and evaluation phase

This category is very important. First, the company clarifies the purpose of IFRS adoption, builds a project team, and develops a work environment to promote the implementation of IFRS in the wider company.
Second, we understand not only the impact on financial performance but also the impact on the business process, information system, and the need for change in the business management system. We recognize the challenges of IFRS adoption and define the IFRS implementation policy and develop the application.
Legalraasta provides our impact analysis tool that was originally developed, conducting training and program planning services in this sector.


Startup phase

This is a big stage and requires hard time-consuming work. The company developed solutions to the problems that had been adopted and developed new rules and procedures for IFRS adoption. About accounting, the company understands the differences between IFRS standards and Japanese accounting standards, considers accounting treatments differently, develops accounting policies, reviews the scope of consolidation, covers accounting time for group companies, and explains IFRS’s collection information.
Similar to the implementation of IFRS, the company is transforming the business process and information system and is looking at a new management system. After completing the preparation of the census policies and defining a new business process and information system, the company continues to train employees on IFRS acquisition acquisitions.
Legalraasta supports the formulation of census policies, review of company rules and manuals and the analysis of IFRS disclosure data, review of integrated packages, conducting training, and facilitating the implementation of IFRS in related organizations.


Implementation phase

At this stage, the company adopts new accounting policies and procedures established and operates under the new business and information system, and prepares financial statements based on IFRS. Legalraasta supports the preparation of IFRS-based financial statements while ensuring compliance with the revised regulations and manuals and supports the evaluation of the effectiveness of internal controls.


IFRS Convergence Different from IFRS Adoption


The precise timetable for IFRS adoption is set by the SEC, which indicates the period for publicly listed entities to use the IFRS provided by the IASB. Whereas the arrangement between the International Accounting Standard Boards (IASB) and the United States Financial Accounting Standard Board (FASB) in IFRS convergence is to work together to establish accounting standards that are consistent with and of high quality over time. The adoption of IFRS by convergence will be simple and will cost less. It can also remove the needless need for IFRS adoption.

There are, however, some supporters who do not agree that convergence alone is adequate and is necessary to remove the gap between two sets of accounting standards through adoption.

In 2011, the SEC implemented a method that makes it possible to integrate the US financial reporting system into IFRS and help and converge with IFRS over time to support the US GAAP. The decision to integrate US financial standards into IFRS or follow the IFRS process, however, lies with the SEC.

How Legalraasta Will Assist


Our IFRS technical experts proactively anticipate accounting standards, building on our in-depth knowledge of the subject and deep sector expertise resulting from worldwide commitments. We break down very complex scenarios into terms that can be understood by any non-accountant.

Legalraasta allows businesses to complete the transition to IFRS effectively and retain compliance. Our advisors’ extensive and specific experience helps us to offer complex services to support our customers in all areas of IFRS.

In order to support the business with successful transformation methodology, strategic accounting skills, treasury, tax, interim tools, M&A, valuations, and project management, we also have a number of specialists. The experts at Legalraasta will aim to keep you up-to-date with the changing environment of IFRS and facilitate consistent understanding and implementation of those principles.

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