IFRS® Due Diligence

New Zealand equivalents to International Financial Reporting Standards (NZ IFRS®) is a principles-based (rather than rules-based) accounting framework.

Because of this, the application of NZ IFRS requires an entity to apply judgement and estimation to various aspects, and ultimately ensure that substance-over-form outcome is achieved (that is, the objective of NZ IFRS is that the ultimate economic substance of transactions and results is presented).

For certain areas of accounting, the application and of NZ IFRS, and an entity’s documentation of this application, is more “involved”, “complex”, and less “straight-forward” (click here for our article regarding Accounting records and documentation).

The correct application of NZ IFRS is crucial for entities to ensure compliance with its legal financial reporting and accounting record keeping requirements, as well as ensuring the financial statements do not materially misstate the results of the entity – and thereby consequentially threatening shareholder value and stakeholder relations.

In order to accurately, completely, and thoroughly undertake an assessment of such areas, a strong working knowledge of NZ IFRS as well as context to its application in practice to real-life scenarios is crucial.

Accordingly, entities may need to engage external IFRS experts to undertake IFRS Due Diligence of specific transactions, balances, or events.

From Specialist Advice and Opinion, to Impact Assessments, BDO’s Financial Reporting Advisory team have a proven track record in working with entities through their various IFRS Due Diligence challenges.
 

For more information as to how BDO Financial Reporting Advisory might assist with your entity in your entity’s IFRS Due Diligence challenges, please contact James Lindsay at BDO (james.lindsay@bdo.co.nz, ph +64 9 366 8041).