US GAAP & IFRS reporting

US GAAP & IFRS reporting

Most U.S. companies prepare financial statements under U.S. GAAP. Groups with international parents, foreign investors, or dual-reporting needs often also prepare information under IFRS. In either case, recognition, measurement, presentation and disclosure have to follow the applicable standards, and the judgments involved — revenue, leases, financial instruments, estimates, related parties — need to be documented so that they can stand up to audit and to scrutiny by the board or a regulator.

We help management prepare financial statements under U.S. GAAP and, where required, IFRS, think through the accounting for significant transactions, and adopt new or revised standards in a structured way. The work is technical, but the output is practical: papers, disclosures and statements that a reader can follow and that an auditor can test.

We plan reporting work with the entity’s deadline clearly in view, and with the framework — U.S. GAAP, IFRS, or both — agreed at the outset. Mention of a standard describes the framework we work to; it is not a claim of a specialist accreditation.

Who it is for

U.S. GAAP and IFRS reporting support is for companies and groups that prepare financial statements under U.S. GAAP, under IFRS, or under both, that are adopting a new standard, or that need a technical paper on a significant transaction or judgment.

• Companies and groups reporting under U.S. GAAP
• International clients and groups that also report under IFRS
• Entities adopting a standard for the first time or changing an accounting policy
• Finance teams that want documented positions on significant judgments
• Businesses preparing financial statements that will be audited or reviewed

What is included

• Advice on recognition, measurement and disclosure under U.S. GAAP and, where applicable, IFRS
• Support in drafting or reviewing the financial statements and the notes
• Technical accounting papers on significant or unusual transactions
• Assistance with the adoption of new or revised standards, including transition disclosures
• Liaison, where appropriate, with the appointed auditor on the positions taken

What you receive

• Draft or reviewed U.S. GAAP or IFRS financial statements and notes
• Written technical papers that record the facts, the literature and the conclusion
• A transition or implementation plan for new standards, where that is in scope
• A file of judgments and estimates that can be revisited in the following period

Why it matters

Users of financial statements — boards, lenders, investors and regulators — need figures that are prepared consistently and explained clearly. Weak disclosure or an unsupported judgment is often what turns a straightforward audit into a delayed one.

Getting the accounting right before the audit starts, and writing down why a position was taken, is one of the most effective ways to protect a reporting timetable. We have supported this kind of work as part of our practice in New York for many years, alongside our audit engagements for other clients.

How we work

Whether the engagement is a statutory audit or another assignment, we follow a clear sequence so that both teams know what happens next.

• Planning: Every engagement begins with planning. We take time to understand the entity or project, the applicable reporting framework, the people who will rely on the report, and the dates that matter to the board, lenders or funders. Scope, responsibilities and a realistic timetable are agreed in writing before detailed testing begins. We also agree the information we will need from management, and the points at which we will update you as work progresses. Good planning reduces last-minute pressure and helps both teams work in an orderly way.
• Risk assessment: Once we understand the entity, we assess the risks of material misstatement in the financial statements or, for a project review, in the expenditure and compliance areas covered by the terms of reference. This includes considering the business and its environment, the design of relevant internal controls, and areas that typically require judgment — such as revenue recognition, estimates, related-party transactions and going concern. The audit or review plan is then focused on those risks, so effort is concentrated where it will make the most difference rather than spread thinly across every account.
• Fieldwork: Fieldwork is the stage at which we obtain the evidence that will support our report. Depending on the engagement, this may include inquiry of management, inspection of documents, analytical procedures, confirmations, observation and substantive testing of transactions and balances. We work as far as possible from records that are already organized, and we raise questions and interim findings as they arise so that surprises are dealt with during the assignment, not in the final week. Fieldwork may take place at your premises, at our office in New York, or through a combination of on-site and remote work, agreed during planning.
• Reporting: When testing is complete, we evaluate the evidence as a whole, form our conclusions and discuss significant findings with management and, where appropriate, those charged with governance. For a statutory audit, the formal deliverable is the independent auditor’s report on the financial statements, usually accompanied by a management letter that records control observations and recommendations. For project or special-purpose work, we issue the report format required by the funder or the agreed terms of reference. We aim to explain our findings in clear language, so the report is useful as well as compliant.
• Follow-up: Issuing the report is not the end of a useful engagement. We walk management through the observations in the management letter or project report, distinguish between matters that need prompt attention and those that can be planned into the next cycle, and remain available to clarify our findings. Where we are reappointed, lessons from the current period inform planning for the next one — including information requests, cutoff procedures and any control improvements you have made. Follow-up is practical: the aim is a clearer file, fewer recurring adjustments, and a more orderly engagement the next time around.