Transition & first-time adoption
Structured IFRS 1 conversions with the transition decisions documented and defended.
From first-time adoption to the technical judgements that recur every reporting cycle across IFRS 9, 15, 16 and 17, we help finance teams reach defensible IFRS positions and disclosures that withstand audit scrutiny. A current priority is IFRS 18, the new presentation standard effective for annual periods beginning on or after 1 January 2027, which reshapes the face of the income statement and how performance measures are governed. We help you plan that change now, while there is time to do it properly.
Adopting IFRS, or applying a newly effective standard, is rarely a matter of mechanical bookkeeping. It turns on accounting policy choices, transition elections, contract-by-contract analysis and disclosures that auditors, regulators and lenders will test in detail. The cost of getting it wrong is measured in restatements, qualified opinions and the erosion of stakeholder confidence.
Finspera 21's IFRS practice is led by specialists in first-time conversion to IFRS and in the major standards, revenue under IFRS 15, financial instruments under IFRS 9, leases under IFRS 16 and insurance contracts under IFRS 17. We work as an extension of your finance function, not a detached reviewer: sizing the change, resolving the technical questions, and leaving behind documentation your auditor can rely on.
IFRS 18, Presentation and Disclosure in Financial Statements, was issued by the IASB in April 2024 and applies to annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. It replaces IAS 1 and carries much of it forward, but it changes the structure of the statement of profit or loss: new defined subtotals for operating profit and for profit before financing and income taxes, income and expenses sorted into operating, investing and financing categories, and formal disclosure of the company-specific performance measures many businesses already publish. Because it alters the face of the income statement and the governance around alternative performance measures, the work is more than a presentational tidy-up, and comparatives will need to be restated on the new basis. Finspera 21 helps you plan the transition early, mapping your current profit or loss to the new categories, taking an inventory of the management-defined performance measures you use in investor and lender communications, and preparing the reconciliations and explanations those measures now require. We size the change against your reporting, agree the presentation decisions with your auditors in advance, and leave documented policies your team can apply each cycle. Starting well before 2027 turns a reporting-season pressure into a controlled, well-evidenced change.
Every engagement is led by a subject-matter expert who owns the technical conclusions. We keep the analysis grounded in the standards as issued by the IASB and in the specific facts of your contracts and circumstances, so that the position we help you reach is one you can explain and sustain long after we have finished.
We work in defined phases so the scope, the deliverables and the technical conclusions are clear at every stage, and so the knowledge stays with your team.
Structured IFRS 1 conversions with the transition decisions documented and defended.
End-to-end application of the standards that most often reshape reported results.
On-call access to considered accounting judgement between and during reporting cycles.
The written record that turns a judgement into a position an auditor will accept.
Effective for annual periods beginning on or after 1 January 2027, IFRS 18 changes how results are presented and how the measures you report to the market are governed. Four themes will shape your transition, and each one is worth planning for now.
The statement of profit or loss must show two defined subtotals, operating profit and profit before financing and income taxes, giving every entity a common structure.
Income and expenses are classified as operating, investing or financing, so results are more comparable and the way the numbers read is more consistent across companies.
Company-specific subtotals used in public communications must be disclosed, reconciled to the closest IFRS subtotal and explained, bringing your alternative measures inside the audited accounts.
Clearer principles govern how items are grouped or split, and whether they belong in the primary statements or the notes, reducing unhelpful catch-all balances.
A disciplined, staged engagement model, from first question to defensible outcome.
We establish which standards are in play, review a representative sample of contracts and balances, and produce a gap analysis that sizes the accounting and disclosure impact against your current framework.
We resolve the judgemental questions, transition elections, measurement models, policy choices, and set them down as accounting policies and draft position papers for review.
We work alongside your team to compute transition adjustments, build or validate the supporting models (ECL, lease liabilities, CSM), and prepare the reconciliations and journal entries.
We draft the required disclosures, assemble the position-paper file, and stand behind the conclusions through the external audit, responding to queries as they arise.
We leave documented policies and models your team can run each cycle, and remain available on call for the technical questions that recur or arise anew.
Good advice solves today’s problem, and prepares you for the next one.
, Finspera 21Whether you are converting to IFRS for the first time, implementing a newly effective standard, or weighing a single technical judgement, a short conversation with our IFRS lead will clarify the scope and the path to an audit-ready conclusion. Arrange an initial consultation.