Accounting advisory services

The efforts by the IASB and FASB to converge accounting requirements across a number of key topics is driving significant changes in both IFRS and US GAAP. These forthcoming accounting changes in IFRS and US GAAP over a prolonged period of time could impact the way companies conduct business and track, measure and report various transactions and interests.

The volume and significance of the topics currently under deliberation has the potential to result in a period of unprecedented change, and the implementation of these accounting changes throughout an organization may require significant time and resources. Some of these changes are transformational in nature and may impact the entire organization (systems, processes, controls, record keeping, performance measurement and results, communication). 

KPMG's Accounting Advisory Services practice is well positioned to help you implement new accounting standards. KPMG professionals can provide timely advice on the impacts of accounting changes, assist you in the development of an implementation roadmap and conduct technical training sessions to equip your team with the knowledge to navigate new standards successfully.

Our teams understand that the pace of these changes is swift, the volume is significant, and it can be hard to keep up with all the requirements and potential impacts. KPMG member firms work with you to understand the potential implications of the anticipated accounting changes and the potential business decisions that may be necessary. Our cross functional teams can provide insight into the impact on general control environment, systems and processes, and business integration.

Accrual accounting improves the quality of general purpose reporting by public sector entities, and can lead to better informed assessments of the resource allocation decisions made by governments, thereby helping in the increase of transparency and accountability. The International Public Sector Accounting Standards Board (IPSASB) has highlighted that the financial and sovereign debt crises have brought to light, as never before, the need for better financial reporting by governments worldwide, and the need for improvements in the management of public sector resources. Strong and transparent financial reporting has the potential to improve public sector decision making and to make governments more accountable to their constituents. 

Governments that report on a cash basis do not account for significant liabilities, such as pensions and infrastructure development.  As a result, the IPSASB encourages public sector entities to adopt the accrual basis of accounting, which will likely improve financial management and increase transparency resulting in a more complete and accurate view of a government's financial position.  Many governments, jurisdictions, and international institutions have already adopted IPSAS, and many more are on the road to implementing the standards.

KPMG's Cash to Accrual and IPSAS services look to provide member firms' clients with broad range of methodologies, including preparing and presenting an impact analysis for the implementation of IPSAS and translating the accounting impacts into tangible actions to help deliver their required changes in the organization's systems, processes, people, and also to the wider business.

You are negotiating an acquisition and structuring a business purchase agreement. There are a variety of financial reporting and accounting considerations impacting your needs, like transaction structuring, valuations, post-deal integration of the acquired business, transaction related accounting issues and requirements of stock exchanges, regulators, etc.

The decision to spin off or sell a division of your company has been made and you have been tasked with the preparation of auditable stand-alone financial statements for inclusion in regulatory filings or as part of the sales documents. Will you be able to prepare the financial statements and meet the requisite regulatory filing deadlines or those imposed by the acquirer, without interruptions to your business?

Transactions; spinoff, sale of a division or acquisition; —can be complex and they are not isolated incidents. They have a life cycle of their own and your advisors should be with you every step of the way.

KPMG member firms’ Accounting Advisory Services (AAS) professionals can help you plan and complete acquisition or divestiture transactions, as well as advise on each stage of the transaction life cycle. By remaining involved through the life cycle of the transaction, our teams help you develop appropriate accounting, finance and tax structures, as well as advise on post-deal and integration strategies (in collaboration with other KPMG member firm expert teams as appropriate).

Do you recognise the business presented in your Annual Report / 10K? Does it really tell your investors whether you’ve had a good year? Does it provide good insights into the business’s health and future prospects?

Corporate reporting is evolving to provide investors with a broader perspective on business performance to address these questions, reflecting expanding regulatory requirements and for example, through the use of the IIRC’s International Integrated Reporting <IR> Framework.

Whether you’re trying to stay ahead of reporting requirements, or just want to give a better account of your business’s performance, KPMG’s Better Business Reporting (BBR) Group can help you to align your reporting with what’s important to the long term success of your business.

Narrative reporting content and Non-Financial Information (NFI), including metrics, in Annual Reports / 10Ks – the ‘MD&A’- are receiving growing focus from investors, regulators and the broader community. Preparers are increasingly being asked to focus on the matters most relevant to the future success of their business, rather than following a list of prescribed disclosures. The result is much greater emphasis on the business model and strategy as a basis for reporting.

However, building a report around your business strategy can be daunting without the comfort-blanket of a disclosure checklist. For those that succeed, the potential reward is a more concise report that is focused on the material drivers of business value – one that is better equipped to support an effective investor dialogue. We know what makes a good reporting strategy and a good report. We seek to support organisations reduce the volume and increase the relevance of their external reporting.

Embarking on the Initial Public Offering (IPO) journey and completing it successfully requires strategic planning, sound advice, and understanding and addressing the potential risks. The IPO journey is long, complicated and requires intense, long-term planning and execution to avoid the many potential challenges that come with the responsibility of transitioning to a public entity. While market timing is outside a company’s control, preparation is not.

Going public is a transformational event requiring many different parts of the business to work together towards a common goal. There is expected to be multiple work streams, from drafting the registration statement, to preparing and auditing financial information, creating a new governance structure, preparing the road show and preparing the organization for life as a public company.

KPMG firms provide a wide range of advisory services to assist with your public offering. Using our IPO methodology, we work with you through the offering process to implement the necessary requirements to help you build a sustainable approach to meet the needs of a public company.

Due to the inevitability of digital transformation, today’s enterprises are facing unprecedented disruption and change that threatens their future viability. The need for combatting volatility due to changing digital landscape, converging industry models and the shifting regulatory environment is expected to become the primary focus for every organization.

While digital disruption may threaten current businesses practices, it also creates significant opportunities for organizations that are willing to proactively embrace this change. Organizations that do not dive in, stand to lose.

CFOs now need a more nimble, effective, and technology- and data-driven finance organization to address this disruption in order to be able to convert these challenges into opportunities. The most successful CFOs are transforming their finance organizations by disrupting their own operating and business models.

KPMG firms are among the leading providers of consulting services in transforming finance digitally using cognitive technologies which help you benefit from automation, turn data into insights and adopt the right operating model. Helping organizations be equipped with the requisite skills which will help you scale-up to your desired maturity level. In addition, KPMG firms offer a comprehensible broad ranging process that uses the latest data and analysis technology. As a final product, the KPMG team provide a qualitatively structured digital transformation.

Rapid globalization, new developments in regulation, changes in accounting standards and increased demands from revenue authorities for greater transparency on tax and accounting structures and records are all increasing the burden on accounting, finance and tax departments.

At the same time, accounting and finance functions are under pressure to provide more and better reporting and compliance in an ever shorter time frame with fewer resources.

Given these challenges, it is not surprising that accounting, finance and tax departments often spend a disproportionate amount of time on routine compliance and compilation activities, rather than focusing on higher value activities such as core business support, strategic tax planning, quality and risk management and process and technology improvement.

As a result, many companies are looking for more consistent, more efficient and more cost effective ways to meet their compliance obligations and want to keep a close watch on some critical Financial Statement (FS) compliance and bookkeeping processes.