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CONVERSION IN IFRS

unknown (student) (242 Points)

22 June 2021

Hi, my company 's client follow Veitnam acccounting now he want to convert the financial in Ifrs. Now the problem is he is just sharing the Annual report to us...which he want to convert to ifrs..I am actually wondering how is it possible to convert it into Ifrs by merely annual report

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7 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 22 June 2021

Go through first time adoption of IFRS and you need to have access to their premium account or a text book. Give me your email, I’ll send you screenshots of that standard when I have time.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 22 June 2021

Forgot, send me your financial statements, I’ll send you the converted statements. That’s easy for me

unknown (student) (242 Points)
Replied 22 June 2021

Is that possible by merely annual report?

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 22 June 2021

The actual problem looks like the attached one. But there are so many issues here where recognition, derecognition of assets and liabilities which of course not all are needed in profit and loss. So,e intangible assets info maybe required from balance sheet. Then reclassification, like offsetting of incomes and expenses are not allowed in IFRS from previous GAAP. It’s complex. But if I know your line items in profit and loss, I can find out if it is easy or more info is required.

Attached File : 2750458 20210622191437 bb0baf34 1a65 4db8 8b15 1e86af2d1238.jpeg downloaded: 34 times

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 24 June 2021

As per our conversation, you can follow this format. While doing measurements of PPE and IFRS 9 there are certain criteria which we can discuss further. Here Deemed cost means substitute cost carried forward from previous GAAP.

ITEMS	GAAP	IFRS	TRANSITION
Revenue	xxx	xxx	Deemed Revenue - Sales Returns (GAAP)
Customer Contracts	xxx	xxx	Deemed Revenue
COS
Opening Inventory	xx	xx	Deemed cost + fixed and variable production costs
Inventory Write-off	xx	xx	Deemed Cost or Charged to retained earning
Purchases	xx	xx	Deemed Cost
Returns	xx	xx	Deemed amount
Depreciation	xx	xx	Deemed Depreciation
Amortisation	xx	xx	Deemed Cost and any difference in amounts between GAAP & IFRS is taken to Retained Earnings
Impairment Loss			Deemed Loss
Intagible Assets (a)	xx	xx	Deemed Cost and recognise the differences due to estimates and errors in retained earnings +/-
Pension Liability	xx	xx	Deemed Cost
Closing Inventory	xx	xx	Deemed cost (Includes both fixed and variable production overheads)
Total COS	xxx	xxx
Gross Profit	xxxxx	xxxxx
Distribution Costs
Pension Liability	xx	xx	Deemed Cost
Advertisement	xx	xx	Deemed Cost
Administration Costs	xx	xx	Deemed cost (Includes both fixed and variable production overheads)
Pension Liability	xx	xx	Deemed Cost
Finance Income	xx	xx	Deemed Income if financial instruments measured are close to IFRS or else derecognise financial assets and re-recognise them as per IFRS
Finance Costs	xx	xx	Deemed Cost if financial instruments measured as per IFRS or else derecognise financial assets and re-recognise them as per IFRS
PBT	xxxxx	xxxxx
Current Tax	xx	xx	Deemed Cost +/- tax amount increase/decrease adjustment as a result from the above.
Deferred Tax	xx	xx	Deemed Cost and other Deferred Taxes arising from recognitionof development costs, derivatives, unralised gains, production overheads increasing cost of Inventories, restructuring provisions derecognised on transition is included in Retained Earning.
PAT	xxxxx	xxxxx
OCI
FX Translations gains/losses	xx	xx	IFRS method of recognition and all previous GAAP reserves will be '0'
Profit attributable to Owners Equity	xxxxx	xxxxx
			(a) some research, start-up, pre-operating, training, advertising, moving and relocation costs are recognised as assets as per previous GAAP. Under IFRS, expense them and derecognise as assets.

If we have the financial statements, it will be much more easier

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 24 June 2021

forgot, the 2004 transition material i referred yesterday, is inline with current transition. Apart from purchasing implementation guide, there is no validity that everything is updated because text books and some definitions changed with standards and conceptual framework.