Are you ready for the global accounting standards? Our expert audit team offers comprehensive services for analyzing, converting and implementing IFRS international accounting standards. Whether your company already operates internationally or is planning to do so, the correct application of these standards is crucial for the transparency and comparability of your financial reports.

We support you in the seamless transition from your previous accounting system to IFRS. In doing so, we take into account all industry-specific features and the individual requirements of your company. Our targeted approach ensures that the transition is efficient and compliant with all relevant regulations.

We also conduct thorough audits of your financial reports prepared in accordance with IFRS. These audits help to strengthen the confidence of investors and other stakeholders. Rely on our expertise to ensure the integrity of your financial reporting and strengthen your position in the international markets.
 

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Audit of annual financial statements pursuant to IFRS

For many years, Baker Tilly has been auditing the annual and consolidated financial statements of numerous listed companies and international corporate groups. In addition, we advise a large number of well-known corporate groups on the preparation of IFRS financial statements. We are therefore familiar with the complex requirements associated with IFRS financial statements and know exactly how to comply with them efficiently and at an early stage during the audit. Our established IFRS audit approach guarantees the smooth and routine performance of these audits.

The audit of IFRS financial statements requires, above all, optimally structured audit planning in terms of timing and content. We see ourselves as a partner to our clients, proactively pointing out new and complex requirements at an early stage. Precise knowledge of your business activities and contractual arrangements is essential for the audit of IFRS financial statements. This is why we see the audit as a year-round process in which we are in constant contact with our clients.
 

The team members of the Baker Tilly IFRS Practice Group have in-depth knowledge of all relevant auditing and accounting issues and contribute their extensive experience in the area of capital market-oriented and internationally operating corporate groups. Our focus is on developing practice-oriented solutions and concentrating on the essentials.

At the same time, we are aware of the requirements of the enforcement proceedings of the German Financial Reporting Enforcement Panel (FREP). We proactively develop improvement and efficiency enhancement potential for our clients and are always available as an objective and challenging discussion partner.
 

In order to meet these requirements, we attach particular importance to the fact that, when putting together an audit team for both national and international audits, you are advised by teams,

  • who are very familiar with the environment of capital market-oriented, internationally operating companies, 
  • who have extensive experience with IFRS,
  • whose members are certified auditors under the relevant national law, and
  • who are committed to the audit project in a reliable and sustainable manner.

Continuity in the composition of the audit team is our top priority. Because we know: A sustainable team composition means securing know-how and thus quality, efficiency and relief for your employees.

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IFRS Conversion

The conversion to IFRS accounting not only affects a company's financial accounting, but also has an enormous impact on operational processes and system requirements. In view of the large amount of new information required, this often affects almost all business divisions.

The conversion of accounting to IFRS is also often associated with the adaptation of internal guidelines, management systems and training concepts for employees. It is therefore essential to start the conversion process early and in a well-structured manner.

Based on this knowledge, our IFRS experts have been advising clients on the first-time application of IFRS for many years, using the established Baker Tilly approach in order to structure the content and timing of these adjustments. This enables us to manage the entire conversion process which includes the initial analysis of the relevant issues (scoping process), the assessment of all accounting issues in accordance with IFRS, support with the provision of data for the transition effects and the notes and the final quality assurance review of the results.
 

IFRS - Introduction of new standards

The introduction of new accounting standards often requires far-reaching changes to processes and information flows in a company. Similarly, the ongoing updates and adjustments to existing standards must be continuously monitored and employees outside of accounting must also be informed and trained on the aspects of the changes that are relevant to them (e.g., the adjustment of customer contracts due to the new concept of revenue recognition in accordance with IFRS 15).

The introduction of new and the adjustment of existing accounting standards therefore requires a systematic approach as part of the financial statements’ preparation process. Ideally, the company should start with an analysis to determine whether and to what extent the new accounting standard will affect accounting. In a next step, the expected impact on accounting and other areas of the company should be assessed and initial measures to implement the new accounting standard should be taken.

Our experts will support you in this process with their experience. We support you in analyzing the potential impact of new standards on your company and assist you with the necessary adaptation of systems and processes as well as with the accounting-related implementation of the new IFRS requirements. Our support concept aims to enable your employees to implement the new requirements independently and efficiently following our support.

Purchase price allocation & impairment test

Following company acquisitions, the IFRS 3 accounting standard requires for the purchase price paid to be allocated to the identifiable assets and liabilities acquired. This also includes the measurement of previously unrecognized undisclosed reserves and unrealized losses. In particular the measurement of acquired, previously unrecognized intangible assets often presents a company with major difficulties due to their individuality and the regular lack of market prices. At the same time, the correct application of IFRS 3 is one of the typical audit fields for the German Financial Reporting Enforcement Panel (FREP).

There are similar issues relating to measurement as part of the annual impairment test in accordance with IAS 36. Intangible assets with an indefinite useful life, including goodwill, require an annual impairment test of their (residual) book value. IFRS entail a whole range of obligations, which we support you in fulfilling. Companies’ staff capacities are generally already fully utilized with the preparation of financial statements, often under high time pressure and at the same time with the constantly increasing complexity of the issues to be accounted for. Through our involvement and the transfer of this easily separable area of work, we can relieve your employees considerably and thus make a significant contribution to ensuring the high quality standards of your annual and consolidated financial statements.

Due to the large number of capital market-oriented companies we support with our auditing and consulting services, our IFRS experts have extensive expertise in the area of valuation and impairment testing of intangible assets, including goodwill. Our team will be happy to help you meet these complex accounting requirements in an audit-proof manner.
 

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Advice on DPR proceedings

The German Financial Reporting Enforcement Panel (FREP) has been examining the financial reporting of capital market-oriented companies (enforcement) since July 1, 2005. The FREP has set itself the goal of contributing to transparent and correct accounting of capital market-oriented companies in the interests of the capital market.

An examination of financial reporting by the FREP is always associated with considerable challenges for a company in terms of content, organization and time, regardless of how high the risk of error is in a company. For years, errors in the specific application of IFRS have been among the most frequently identified findings by the FREP, e.g., in relation to the recognition of complex business combinations and financial instruments.

Baker Tilly supports you in answering the sometimes very complex questions of the FREP, which often have to be answered very quickly, efficiently and to a high standard, while reducing your employees’ workload as far as possible.

Our IFRS experts have many years of experience in supporting clients in FREP proceedings. We also take part in an annual exchange of experience with the FREP. This ensures that we always have an up-to-date and precise understanding of the issues and approaches relevant to the FREP. We share this knowledge with you, address the expected key audit matters together with you and naturally also support you in answering all FREP questions.
 

IPO readiness projects & advice on IPOs

As part of establishing the accounting department’s IPO readiness, we support you not only with the (first-time) preparation of the IFRS financial statements but also with all further steps towards capital market readiness. These can include, for example, the first-time preparation of segment reporting, the preparation of interim financial statements (incl. previous year) for prospectus purposes and the adjustment of management report disclosures.

In such a project, it is important to take into account the various interests of shareholders and stakeholders under great time pressure in order to create the perfect basis for the subsequent listing and the smooth implementation of the intended marketing. In this context, it is always crucial to start the preparatory activities for the IPO in all business divisions in good time in order to limit the additional burden on your employees to an unavoidable minimum.

Even in the “hot” phase of the IPO, our IFRS experts support and strengthen your team in all relevant areas (e.g., by providing additional capacities, support with special topics such as the derivation of APMs) in order to ensure the success of the planned capital market transaction.

With our experienced team, which has worked on a large number of IPO readiness projects and IPOs, we support you in the run-up to and during this extremely important transaction for your company.
 

Expert opinions

Difficult accounting issues and their correct recognition in the balance sheet may well lead to discussions with the auditor, but also with shareholders and other report recipients. Such issues can originate, for example, from the introduction of new accounting standards or changes in a company’s operational focus with correspondingly necessary adjustments to contracts.

In such cases, Baker Tilly’s IFRS experts provide support by preparing expert opinions or statements on the recognition of transactions and contractual relationships. This provides you with an independent, fresh view of the issue that is new and unbiased by previous discussions and, if necessary, opens up a new perspective or other arguments and can thus contribute to finding a solution.

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Individual IFRS Workshops

The introduction of new or changes to existing IFRS standards often lead to increased difficulties for the employees responsible for preparing the financial statements, both in terms of understanding the requirements of the respective standard and in terms of concrete implementation against the background of the company’s internal information flows.

Early and practical training is therefore essential to ensure a smooth financial statement preparation process. To this end, we offer precisely tailored training courses and workshops in order to prepare our clients as well as possible for the next reporting season and the new challenges.

Comfort Letter

Capital market-oriented companies in Europe are generally required to prepare their financial statements in accordance with IFRS as applicable in the EU. In the run-up to an IPO on the capital market with the aim of placing shares, bonds or other marketable securities, prospectuses must regularly be prepared which – based on the company’s IFRS financial statements – provide information for potential purchasers of securities. The financial information provided therein is the responsibility of the respective company.

As auditors, our task is to examine the (financial) information presented in these capital market prospectuses as part of a precisely defined scope of engagement in each individual case. Our IFRS experts prepare a letter (the so-called comfort letter) on the results of their investigations, which is addressed to both the company and the banks accompanying the capital market measure. The comfort letter thus serves as proof that the company has exercised due diligence with regard to the information provided in the prospectus documents.

The Baker Tilly IFRS experts have already supported numerous capital market measures and are therefore familiar with the high demands that banks, stock exchanges and other stakeholders place on the information to be published. We also know the pitfalls a company needs to avoid in order not to jeopardize the success of a capital market measure. We are happy to contribute our expertise in order to successfully accompany you and your company to the capital market.
 

Odile Benecke

Odile Benecke

Partner

Certified Tax Advisor

Marco Brokemper

Marco Brokemper

Partner

German CPA, Certified Tax Advisor

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Baker_Tilly_-_IFRS_2020.pdf, 609 KB

IFRS: Your challenges – our solutions

Baker Tilly International Accounting Services

The International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) govern the preparation of internationally comparable annual and consolidated financial statements, irrespective of national law. Our IFRS experts provide you with competent and reliable support on all relevant issues: From the audit of capital market-oriented companies to the conversion of accounting from HGB to IFRS in the run-up to IPOs or corporate transactions to support with the introduction of new international accounting standards (e.g., IFRS 16). Only available in German.

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Frequently asked questions

IFRS and US GAAP are both standards for financial reporting that are applied by companies worldwide, but differ with regard to certain principles and rules. While IFRS, issued by the International Accounting Standards Board (IASB), is based on principles-based accounting, US GAAP, regulated by the Financial Accounting Standards Board (FASB), is more rule-based. These differences can have an impact on the presentation of financial items such as depreciation and amortization, leases and the recognition of financial instruments. For some time now, IFRS has been increasingly gaining ground over US GAAP.

The application of IFRS can have a significant impact on international business activities, as it improves the transparency and comparability of financial reports. This makes it easier for investors and other stakeholders to assess a company’s financial health and performance across national borders. Internationally operating companies therefore benefit from increased credibility and may get easier access to global capital markets.

The transition from local accounting standards to IFRS can be complex and often requires significant changes to a company’s accounting and financial reporting. Challenges include training staff, adapting IT systems and implementing new internal controls in order to meet the requirements of these standards. In addition, the transition can have a significant impact on financial performance, such as changes in the presentation of results or the valuation of assets.

A key advantage of IFRS accounting is the increased transparency and comparability of financial information, which enables companies to build trust with investors and financial markets. These standards also facilitate mergers and acquisitions, as they improve comparability of the financial statements of different companies. Furthermore, by complying with internationally recognized standards, companies may be able to obtain better financing conditions and tap into new markets.

manager magazin: Baker Tilly is one of “Germany’s best auditors 2024/2025”

Baker Tilly has consolidated its top-10 ranking among the so-called “auditor champions” and is once again one of Germany’s best MDPs this year. In the new category of “ESG & Sustainability”, Baker Tilly outperforms the Big Four and takes second place.

In the “Tax Consulting” category, Baker Tilly was able to improve its ranking. Furthermore, various nominations in several categories, such as “Audit”, “Digital Transformation”, “Legal Advice”, “Reorganization/Restructuring Advice”, “Other Auditing Services” and “Transaction Consulting” confirm Baker Tilly’s strong market position.

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