Competencies  Financial Management   Accounting Standards 

Accounting Standards

Competence Center Financial Management

On 31st March 2004, the International Accounting Standards Board (IASB) published new standards in completion of the International Financial Reporting Standards (IFRS) which will come into effect as of 2005. From 2005 onward, it is not only listed companies which will report in accordance with international standards. Instead, more and more small and medium-sized enterprises which are not obliged to report in compliance with either IFRS or US GAAP are converting their main accounting practices to one of these international standards.
If the company chooses to show its accounts in accordance with IFRS, the decision is often made to use the cost of sales method for the profit and loss account.

Benefits of Parallel Accounting and Cost of Sales Method

You benefit from the advantages of accounting according to IFRS or US-GAAP and the increased transparency of the cost of sales method – we at J&M can assist you in realizing your objectives with our expertise and consistent project management.
  • Improved access to the international capital markets.
  • Improvement in the ability to meet the need for information on the part of the capital market shareholders (investors, analysts, banks).
  • Harmonization of internal and external accounting.
  • Increased transparency of operating profit due to presentation in accordance with the costs of sales method.
  • Better transparency regarding controlling-related information within the context of external accounting.
  • Costs and controlling classified according to function and areas of responsibility within the company.
  • Transparent segment reporting for balance sheet and profit and loss account; strategy transparency due to segmentation according to branch and region.

Management Consulting

  • Development of a concept for future accounting strategy
    The company strategy is analysed, the environment together with investors and banks is evaluated, suitable accounting methods are derived and, if applicable, a decision is made as to whether or not to use the cost of sales method. J&M is not only proficient in all SAP variants and possibilities of showing parallel accounting, we also focus in particular on analysing customer-specific conversion possibilities and ultimately implementing a tailored, pragmatic solution for our customers.

IT Consulting

  • Conversion of SAP systems to parallel accounting / cost of sales method
    From the point of view of the SAP system, this generally means that alongside reporting in accordance with local GAAP regulations, further reporting is to be shown in parallel in accordance with IFRS or US-GAAP at the same time as depicting the profit and loss account using the cost of sales method.Our advice is not only based on our extensive technical knowledge, but also in particular on managerial and legal know-how regarding the depicting of international accounting regulations using SAP.We always take a highly process-oriented, cross-module and cross-system view of the value flow, and work in small teams made up of highly experienced consultants to implement the necessary system adjustments.

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Lars Eickmann
l.eickmannjnm.com
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