Interim Project Manager / Worldwide IFRS Conversion

Introduction:
At a Tier 1 automotive supplier, the group-wide accounting system was changed from HGB to IFRS due to global stakeholders such as customers and suppliers, as well as a global
corporate financing in the capital market environment require internationally accepted accounting standards.

Company:

  • Automotive supplier Tier 1
  • 3.000 Mio.ÔéČ turnover
  • 12,000 employees

Measures and implementation steps at a glance:
Overall, six key steps were identified for implementing the task of converting from HGB to IFRS, which are briefly explained below.

1. definition of the project structure with definition of the project phases

    • Identification phase: definition of the scope of the changeover, external and internal accounting is mandatory, IT represented an essential support function, to be decided on a case-by-case basis is the inclusion of processes, risk management, internal control, etc.
    • Diagnosis phase: Rough analysis and simulation of the conversion effects under alternative consolidation scenarios, analysis of the determination of the specific scope of conversion per legal entity taking IFRS 10 into account.
    • Design phase: Determination of IFRS 1 options, conceptual design of segment reporting, structure of notes to the financial statements
    • Implementation phase: Deviation analysis from IFRS to local accounting, quantification of changeover effects, quantification of changeover effort, breakdown of changeover effects into traceable individual activities
    • Stabilization phase: Sustainable anchoring of the changeover in corporate processes

2. preparation of the project plan 

      • Planning of the global and local project teams
      • Coordination of the process changeover in the departmental interfaces
      • Milestone monitoring

3. definition of the project resources

  • Definition of the project team and project sponsors
  • Calculation of project costs and ongoing costs of IFRS reporting

4. definition of the changeover date, derived from this the
Comparative period

5. communication of project results to board, management, advisory board

6. elaboration of the priority topics in all legal units

  • Revenue recognition IAS 18/IAS 11/IFRS 15
    • Series revenues / development revenues (PoC)
    • Combined development and series orders
    • Unit Price Amortization Models
    • Tooling subsidies and revenues
    • Launch cost subsidies
    • Advance discounts
  • Internally generated intangible assets
  • Customer and supplier tools
  • Economic useful lives of assets and their application
  • Component approach
  • Equity structure
  • Leasing agreements
  • Pension provisions
  • Liabilities and provisions
  • Notes

Results at a glance:

  1. Preparation of the first audited IFRS financial statements with opening balance sheet and
    Comparative period (previous year)
  2.  Harmonization of external and internal accounting, supports
    through the introduction of SAP NewGL, SAP CO-PA and conversion to UKV
  3. Preparation of a detailed accounting manual implemented worldwide
  4. Unification of the chart of accounts and accounting rules
  5. Creation and implementation of a group-wide training concept
  6. Standardization of essential accounting-relevant
    Business processes
  7. Acceptance of IFRS accounting as a cross-functional task

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