Financial statements are the ultimate report card of a company’s fiscal performance. They enable owners and managers to pursue their business objectives, raising capital, acquisition, divestiture, or restructuring. Therefore, through the company’s lifecycle, every business activity impacts the financial statements and hence needs to be carefully examined and analyzed.
Our FRAS group is a set of professionals who have significant hands-on experience in providing Financial Accounting Advisory Services such as INDAS/IFRS/US GAAP services, end-to-end solutions, and support services relating to complex financial requirements in a wide range of scenarios.
With global corporate integration enabling exponential growth for Indian companies, corporate financial reporting in an internationally accepted framework is inevitable. For dynamic Indian businesses, the challenge to catapult into the next phase of growth magnifies with the ever-increasing focus on the quality and transparency of financial reporting by various stakeholders. On 16 February 2015, the MCA notified the Ind AS and roadmap for implementation thereof.
At SBC, we understand the importance of aligning Corporate Financial Reporting with regulatory changes and the need for accurate financial reporting.
Our professionals of financial management consultancy services are experienced in the following GAAP conversions
Investors prefer to see consolidated financial statements, driving listed companies to increasingly move in that direction for their quarterly reporting. In India, preparing annual consolidated financial statements is a statutory requirement.
Consolidation as a process has multiple challenges, specifically dealing with different reporting formats and methods used by different group entities. Our Financial Consultancy Services also include consolidation solutions to make sure that your consolidation process is as streamlined as regular financial reporting. We offer an in-house developed consolidation tool as well as professional services to prepare a structured set of consolidated financial statements.
Raising capital is inherent to any growing and expanding business. While narrating the future growth story of an investor’s capital is one part of capital raising, it is equally important to show the history, which is best told by a set of financial statements.
Most companies that raise capital for the first time do not have adequate financial reporting processes and experience to handle public financial reporting. Moreover, at the time of capital raising, the existing finance teams are already stretched to their extreme. It is wise to take help from financial advisory services in India. This is where our team of professionals can help, by handling the pressure and helping companies in telling their financial reporting story through high-quality financial statements.
With global corporate integration enabling exponential growth for Indian companies, exposure to global economic factors is inevitable. Companies engage in global trade or foreign currency transactions to benefit from arbitrage. However, this may have a long-term impact on the economic results of business transactions. Some of the common risks that companies face include foreign currency risk, commodity price risk and interest rate risk among others.
While companies’ risk management strategies limit the impact on cash flows, it is the P&L that is considered the pulse of financial health. The accounting technique to link the risk management strategy to the P&L is called ‘hedge accounting’, a privilege accounting under the accounting standards (Ind AS 109 or IFRS 9). When correctly applied, hedge accounting and valuation techniques can smoothen the P&L and maintain parity between cash flows.
Successful organizations are founded on people who are efficiently organized with processes and documented knowledge. The accounting manual is a critical part of the finance function of a company, as it ensures that the risk of over-reliance on a single individual does not harm the company. An accounting manual is a critical control in the overall finance function, and we believe an effective accounting manual is that which can be as dynamic as the organization itself. We offer an in-house developed accounting manual solution that is robust as well as dynamic, detailed as well as flexible, and a must for growing companies.
Companies in India transitioned to Ind AS in a phased manner. Likewise, companies worldwide are moving to IFRS. With Ind AS/IFRS evolving GAAPs, there are bound to be reporting challenges for companies. Our financial consultancy services in India boasts of a team of professionals who take the pressure away from in-house finance teams by preparing a set of compliant financial statements.
Complex transactions often require documented analysis, GAAP interpretation, and some judgment. An inexperienced finance team makes the accounting for these non-routine/complex transactions prone to errors. Our team of professionals deals with such transactions regularly. In addition, we offer our transaction accounting services for the specific needs of companies that have either entered into or are contemplating entering into a complex transaction:
Typical examples of complex transactions we regularly deal with:
As a part of our corporate finance advisory services for transaction accounting, we offer:
IFRS is a continuously evolving GAAP, Ind AS, drawing its dynamism from IFRS. In the recent past, GAAPs have seen significant new changes, with the coming of IFRS 9 and IFRS 15, which impacted most companies’ financial statements in ways that mattered. Moreover, IFRS 16 and IFRS 17 are all set to impact financial statements again in the near future.
Our team of professionals tracks development in accounting standards from the exposure draft stages and prepares for its implementation long before they are applicable. We help companies prepare for these new accounting changes and implement them.
Global capital markets are increasingly getting integrated, and businesses are growing internationally. International expansion plans may involve cross-border acquisitions or joint ventures abroad, raising international debt finance, developing relationships with private equity houses, or raising capital from the equity markets, whether in India or abroad.
In India, the Ministry of Corporate Affairs (MCA) has notified phase-wise convergence of Indian Standards with IFRS, known as Indian Accounting Standards (Ind AS). These standards have become effective from 2016-17 and are applied to all listed companies with a net worth exceeding Rs.500 crores. Experience in working on Ind AS conversion of more than 100 companies in Phase I. Any company may voluntarily comply with Ind AS for accounting periods beginning or after 1 April 2015.
We deliver tailor-made assurance services accentuated by impeccable quality to our clients in the local and global marketplace. Our focus is on assisting our clients in steering through complex professional requirements with clarity and agility through our financial reporting services for small businesses, and companies. Our partner-led approach helps navigate complexities to provide insights into your business with customized solutions. SBC delivers tailor-made assurance and auditing services in India accentuated by impeccable quality to our clients in the local and global marketplace. We aim to assist our clients in steering through complex professional requirements with clarity and agility.
SBC, through its role as a rating agency, addresses investors and issuers. Our ESG strategy focuses on three areas: integration of ESG into risk, impact, and performance considerations. Our range of solutions is based on a strong analytical foundation, a data-driven approach, and a particular focus on the measurement and materiality of ESG criteria. Our ESG solutions are tailored to the diverse needs of financial players, from capital market desks to risk teams and asset managers.