Because it can be difficult for investors to compare corporate performance across geographies when different accounting standards are used, a global industrial manufacturer mandated that its subsidiaries implement International Financial Reporting Standards (IFRS) to level the playing field. However, the U.S. division did not have the expertise or resources to achieve IFRS-compliant financial statements within the prescribed timeline. To add to the challenge, several U.S. accounting standards had to be implemented on the heels of the IFRS deadline.
KPMG worked collaboratively with our client in the areas of program management, technical accounting, model development, and business validation, coordinating across the globe with our counterparts in other KPMG firms, and helping the U.S. subsidiary build trust with the parent company. We developed tools that could be used to help the client successfully implement both IFRS and U.S. accounting standards. Embedding KPMG personnel in key workstreams (risk, accounting, data, and modeling), we helped build strong relationships that established the framework for additional successful deliveries.
The subsidiary now has the knowledge and tools it needed to meet the necessary standards, but has also increased confidence and trust by making it easier for investors to compare peer performance using the same financial yardsticks.
We know how to get things done.