In today’s competitive business environment and fast changing regulatory and reporting landscape, dynamic organisations face several challenges with respect to financial reporting which could potentially impact the value of the businesses.
As a part of our Assurance practice, we have a set of professionals who have significant hands-on experience in providing end-to-end solutions and support services relating to complex financial requirements in a wide range of scenarios such as capital raising in international markets, mergers & acquisitions, divestitures & spin-offs, restructuring, regulatory compliance, etc.
There has never been a greater need for accurate and timely financial information in India than now. Over the years, we have developed innovative solutions to make your financial reporting process smooth, time-bound and auditable.
Our services Include:
A. Consolidated Financial Reporting
- A. Consolidated Financial Reporting
- B. Technical accounting advisory
A number of dynamic Indian corporate have grown rapidly, both domestically as well as internationally, either organically and/or through acquisitions. In addition, there is an ever increasing focus on the quality and transparency of financial reporting by various stakeholders, viz. investors, lending institutions, shareholders, auditors, regulators, senior management, board of directors etc.
The financial reporting environment today is faced with multiple challenges, inter-alia;
- pressures to publish financial information quickly
- increasing size and diversity of businesses
- evolving accounting standards, guidance and references
- multiplicity of accounting practices and standards across entities, segments, jurisdictions and sectors
- Varied reporting timelines and objectives (management, statutory, regulatory etc.)
- quality of accountants for data processing, validation
- complexity in business transactions
These challenges, individually or collectively, pose a significant risk of inaccurate financial reporting, which could in-turn have serious ramifications on the reputation and operations of a company and its executive officers.
Accordingly, it is imperative for a company to define a process whereby the following is achieved:
- Consistency of application of accounting practices across entities/units/geographies;
- Rigor in accounting and review of routine transactions;
- Reliance on well-defined processes more than people;
Our services: Our people will develop a systematic, reliable, efficient and scalable process – enhancing productivity and mitigating risks to the company as a result of the increased complex requirements and scrutiny.
This will entail a careful well documented evaluation (and suitable modifications) of the financial close process, in order to achieve an optimal balance of transparency, consistency, accuracy, reliability and speed while also controlling costs. Our team comprises of financial reporting and accounting experts – all whom have several years of hands on practical experience in various sectors and jurisdictions.
Our methodology comprises of three steps:
- Understand ‘as-is’ reporting framework at segment/ unit/ entity/ subsidiary level and the reporting process
- Understand the nature of the transactions, process of capturing/ reporting the same, current accounting/reporting/ consolidation procedures etc.
- Identify challenges and ‘bottle-necks’ faced by the finance/ reporting teams
- We work with the users’ of our solutions (i.e. finance/ reporting teams) to develop an optimal close process, incorporating improvement opportunities.
- Our deliverables may include:
- Standard reporting procedures
- Accounting/Reporting/ Consolidation manuals (including standard adjustments)
- Streamlined chart of accounts (‘COA’)
Technical accounting advisory
- The implementation is supported with a series of workshops and training events.
- We provide ‘on-ground’ support for a life cycle of reporting
- We provide a review report laying out the improvements, results and future considerations
With the ever increasing complexity of business activities and transactions, timely technical assistance is often required to ensure correct application of accounting standards and avoid future issues in the financial close process or any potential restatements. Our team of professionals, with their deep knowledge of Indian GAAP, IFRS, US GAAP and other local GAAPs has helped some of the most dynamic organisations in the world in their accounting of unusual transactions. We often assist clients at an early stage of a transaction to highlight the accounting implications and provide practical suggestions on the way forward. Some of the typical accounting advisory engagements include:
- accounting analysis of complex debt/equity financial instruments, and assistance in drafting legal agreements
- assistance in implementing new accounting standards
- review of draft stock compensation plans to address and assess the impact on financial reporting (such as equity vs. liability accounting, impact of group stock plans on subsidiary’s financial statements, modification of stock awards)
- assistance in setting up the hedge accounting platform including establishing risk management policies, hedge documentation, effectiveness testing templates and accounting entries
- Accounting of service concession arrangements (infrastructure projects on Build-Operate-Transfer model), long term power purchase agreements or other industry specific transactions
- analysis of financial/non-financial SPVs to evaluate whether consolidation is required.
Our value proposition is timely identification of accounting implications to be able to suggest modifications to legal contracts/business practices with a view of accounting requirements. This helps the clients in making informed decisions and managing stakeholder expectations.