Conversions Services

Your expert for questions

Sylvia Weidinger ist Ihre Expertin für Conversions bei PwC Deutschland

Sylvia Weidinger
Partner, Capital Markets & Accounting Advisory Services, PwC Gwermany

Support for the conversion of accounting

There are many reasons for converting a group’s accounting from one set of rules to another: a so-called conversion may become necessary after an acquisition as part of an M&A transaction, when an investor enters the company or after an IPO. These accounting conversions not only represent a challenge for companies and their employees – they also have far-reaching effects on internal systems and processes.

Our service at a glance

The challenge

Whether an entire group is converting to IFRS on a stand-alone basis or companies are reporting to a new shareholder in accordance with their GAAP as a result of a transaction, companies require expertise in the new accounting standards, such as IFRS, US GAAP or Chinese GAAP. This means that a “major project” with complex project management is added to the day-to-day business. Personnel resources are often lacking for this. Not only is group accounting affected, but also the entire reporting of subsidiaries, joint ventures and associated companies. At the same time, companies must take into account possibilities and limitations – for example, with regard to controlling and taxes. Guidelines, processes and IT systems must be regularly adapted, and employees from different departments must be trained through additional training.

Our advisory approach in four modules

PwC's experts from Capital Markets & Accounting Advisory Services advise you on all aspects of conversion. Our proven conversion advisory approach comprises individual modules that build on each other:

Modul I: Impact Study

We identify key issues that are relevant to the company in order to plan the focal points of the project accordingly.

Modul II: Analysis Phase

Based on the results of Module I, a detailed analysis of all relevant accounting issues follows. Here, we rely on our tool developed specifically for processing GAAP conversion effects as well as standardized guidelines and checklists.

Module III: Implementation and reporting

We prepare the first financial statements based on the new accounting principles. This includes, for example, adjustments to the notes and the chart of accounts. During implementation, we focus on the individual needs and situation of the company. This is done either in the company’s system or at PwC using standardized workflows or LucaNet. We use a wide range of Alteryx workflows for various accounting issues and reporting requirements.

Module IV: (Post-merger) Integration

After the initial financial statements have been prepared, it is necessary to ensure the future IFRS/US GAAP/Chinese GAAP compliance of the systems and processes. For example, adjustments to existing ERP processes, systems and processes for inventory valuation or harmonization of planning are necessary. Note disclosures required by IFRS must be ascertained and consolidated. With our LucaNet partnership, we offer the implementation of a new consolidation system based on IFRS. We also advise on the introduction of so-called disclosure management systems. These offer the possibility of linking ERP financial systems directly to the new IFRS financial statements or annual reports for efficient and effective preparation. In addition, we offer companies the establishment of digital policy management and digital IFRS training in the form of our PwC eLearning Academy.

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Sylvia Weidinger

Sylvia Weidinger

Partner, PwC Germany

Verena Glutting

Verena Glutting

Director, Financial Reporting, PwC Germany

Manuel Hausin

Manuel Hausin

Partner, Capital Markets and Accounting Advisory Services, PwC Germany

Tel: +49 1511 2136391