Implementation Services

Multi GAAP


The International Accounting Standard rules (IAS/IFRS) have been massively adopted by a great majority of multinational companies. By applying these accounting regulations, companies make their financial statements comparable, and make the capital markets more efficient.

Behind the concern of being "IAS/IFRS" compliant as soon as possible, companies also consider these international accounting standards as a way to drive their financial performance, while providing multi views of their financial reports each complying to the regulatory reporting requirements of the governing body in the country of operation.

On one hand, the IAS/IFRS process focuses extensively on the recognition, de-recognition and measurement at fair value of a company's assets and liabilities. On the other hand, the management accounting process strives for value creation through the valuation of a company's net present value, derived from the fair value of its assets and liabilities. As a consequence, there is a growing convergence between the financial performance management concepts and the IAS/IFRS valuation foundations.

egabi's key considerations for successful Multi GAAP solution implementation are:

- Successful implementation of IAS/IFRS solutions requires some basic ingredients that need to be considered upfront.

- Integration of multiple accounting views. Even if a company applies the IAS/IFRS rules, other GAAPs usually remain applicable in parallel to meet requirements of the local office or headquarters. This implies that the company needs to deliver multi-GAAP views. For this purpose, a well-built Enterprise Information Management architecture is necessary to avoid silos of information and to ensure the integrity of basic common data sets.

- Strong analysis capabilities. By adopting fair value measurements, companies deal with volatility in reported financial performance. To provide the needed explanation and to optimize forecasting, companies need strong analysis capabilities through significant amounts of historical data. Also for this reason, a solid Enterprise Information architecture has to be setup.

- Strong accounting process. Capital markets and regulators require timely, reliable, relevant and transparent management information. This requirement imposes a monitored, strict and recurrent accounting process that is supported by the adequate technologies.

- Adequate technological choices. The adequate technological choice is not always obvious. Integrating an IAS/IFRS solution requires careful assessment of the existing environment, from both a back-end (Enterprise Information Management) and front-end (business intelligence, CPM solutions) perspective.