We support organizations in conducting the conversion of the primary accounting framework to “IFRS as adopted in Saudi Arabia and other pronouncements as endorsed by SOCPA” (hereafter “IFRS KSA”).
3. Overview of IFRS conversion
We support organizations in conducting the conversion of
the primary accounting framework to “IFRS as adopted in
Saudi Arabia and other pronouncements as endorsed by
SOCPA” (hereafter “IFRS KSA”).
Our support includes:
► Preparing and training your staff for preparation
phase of the IFRS convergence project
► To asses and supervise of first time IFRS KSA
financial statements.
► Assessment of the IFRS convergence implications
on IT platform (process redesign, technical support,
determining system requirements, etc…).
► Determining the impact of the IFRS convergence on
the Organization's business processes, such as on
financial statement disclosures.
► Identifying any opportunities for creating value.
► Designing the major implementation challenge of
the carrying process.
We follow a suggested IFRS convergence project plan,
scope and timeline customized to the needs of your
organisation to allow IFRS reporting as first time
adoption. Our plan is designed based on:
►our detailed discussion with the your management
►detailed knowledge of the organization and the current
application of accounting standards within the
Organisation.
►our proven philosophy and methodology to efficiently
and effectively conduct IFRS conversion programs.
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5. IFRS - Convergence approach
► Accounting and reporting
► Business processes and systems
► Regulatory and industry
► Change management, communication and training
Diagnostic
Design
and planning
Solution
development
Implementation
Post
implementation
Workstreams
► Project management
Program
execution
Diagnose Prepare Converge
IFRS Diagnose phase IFRS convergence project scope
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30 October 2016Page 4
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6. The Organisation’s
identification
of accounting, and
reporting, differences
and consequences on
The Organisation’s
business, IT, and
processes.
Set up the project
infrastructure, the
project management
function, including
conversion roadmap and
change management
strategy.
Identify solutions,
Prepare conversion plan
and assist development of
solutions:
accounting and reporting,
business, process and
systems changes.
Diagnostic
Design
and planning
Solution
development
Implementation
Post
implementation
Quality Assurance roll out
solutions developed:
implement accounting and
reporting, business,
system and process
changes
Address items deferred
and transition to
operational model
Diagnostic report
Conversion roadmap
Training needs
Project structure
Client involvement
Communication plan
Expanded conversion
roadmap
Conversion plan
Accounting manuals,
skeleton financial
statements, disclosures
Business process and
systems solutions
Updated project structure
Dry run financial
statements
Opening balance sheet
Implemented solutions
Conversion assessment
Sustainable operational
model.
Training.
KeyGoalsKeyOutputs
Diagnose Prepare Converge
IFRS Diagnose phase IFRS convergence project scope
ü
IFRS - Convergence Project Areas/Phases
ü
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7. Change management,
communication and
training
• Support in implementation of the IFRS KSA accounting policies into the accounting manual.
• Training the required skill set of employees as part of the separate training client engagement
• Compliance review and quality assurance on the changes to the IT systems.
• Identification and qualification of any “VALUE CREATING” opportunities.
Accounting and
reporting
• Diagnostic activities: identification of GAAP vs IFRS KSA differences
• Solutions development and implementation comprises all activities regarding assistance in the
development of:
• IFRS KSA accounting policies
• Skeleton IFRS KSA financial statements and IFRS KSA disclosures
• Opening balance sheet and comparative financial information
• Addresses highly technical and complex accounting areas
• Transition to operating model and ongoing update process.
• Assists accounting work stream in industry specific areas.
• Deals with industry specific regulatory reporting requirements and interactions with IFRS KSA conversion.Regulatory and industry
Business processes
and systems
• Works with the client’s accounting and reporting teams to manage changes to the Organisation’s
business, IT, and processes driven by IFRS KSA accounting changes across the various business areas
affected
• Identifies the impact on the Organisation’s processes (including FSCP), resolution and implementation of
new processes.
• Assists the accounting and reporting teams in developing and implementing work plans to resolve issues
impacting The Organisation’s business (e.g. workarounds related to the multi GAAP reporting)
• Identifies technical requirements of any IT changes, including impact of IFRS KSA on the IT systems.
• Identifying and resolving communication issues relating to employees and shareholders.
• Training needs
IFRS - Convergence Project Areas – Workstreams
30 October 2016Page 6
