Automotive suppliers, dealers, manufacturers and affiliates have unique challenges in IFRS reporting.
We understand these challenges and can guide you through various options to best meet your unique business case.
Companies across the whole automotive industry spectrum – suppliers, dealers, manufacturers and their finance affiliates (primarily leasing companies), will be heavily affected by the new standards – IFRS 15 — Revenue from Contracts with Customers and IFRS 16 – Leases.
Applicable on or after 1 January 2018 and 1 January 2019 respectively, both standards leave the companies little to no time to perform a comprehensive review of their existing contracts, business models, accounting policies, IT systems, internal processes and controls. We offer our technical expertise to help companies go through the exciting journey of implementing the new IFRS standards.
Some relevant accounting areas of controversy that we can advise automotive industry companies on include:
- The accounting for pre-production activities (the new standard contains more detailed guidance on whether a contract exists, which may result in no revenue being recognized for pre-production activities under certain circumstances);
- Accounting for different types of incentives;
- Accounting for volume rebates, repurchase options, product warranties, contract costs, and lease financing arrangements.
We help the automotive companies with accounting and reporting services such as:
More than 30 jurisdictions across Europe require IFRS standards for listed financial institutions or public interest entities (PIEs). Others are on the path to either full acceptance or – at the very least – dual compliance. We can help you be compliant and confident in your numbers.Learn more
In modern capital markets, accounting and financial reporting are becoming increasingly complex. IFRS issues need to be anticipated in advance and resolved timely in order to preserve the value of the business and avoid regulatory sanctions. Let us help with that.Learn more