Evolving technologies and regulations in the modern world create complexity for industrial manufacturing.
As scarcity of raw materials and talent are taking centre stage, a number of pressing accounting problems have emerged.
In industrial manufacturing, metals, chemicals, and forest, paper and packaging entities, technological progress has created new opportunities, as well as challenges, over the last few decades.
New accounting standards have emerged in response to these changes, and must be addressed in your IFRS reporting.
IFRS 15 — Revenue from Contracts with Customers, applicable on or after 1 January 2018, introduced a single, comprehensive revenue recognition model for all contracts with customers. In the new five-step model, entities recognize revenue based on the satisfaction of performance obligations, which occurs when control of good or service transfers to a customer. As a result, either entities recognize revenue over time or at a point in time, which can result in a significant change in the timing or revenue recognition for a number of line items.
Further, the new rules for lessees brought by IFRS 16 – Leases, applicable after 1 January 2019, represent an entirely new conceptualization of leases and will heavily impact the sector, due to the fact that most manufacturing companies are in significant lease arrangements for property, plants and equipment.
We can review your distinct types of revenue streams and leasing arrangements and provide you with, among others:
- New patterns for revenue recognition and measurement for each distinct revenue stream that comply with IFRS 15 and their impact to the financial statements;
- Calculation of the full retrospective effect of IFRS 16 or alternatively calculation of the cumulative effect of initially applying IFRS 16 as an adjustment to opening equity.
We help the industrial manufacturing 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