Preparation of Financial Statements Under IFRS for a Polish Entity with EUR as the Functional Currency
Client:
A Polish company maintaining accounting records in PLN, but reporting under International Financial Reporting Standards (IFRS) with EUR as the functional currency.
Challenge:
Our client, a Polish entity operating in international markets, was required to prepare financial statements under IFRS while using EUR as the functional currency. Despite maintaining accounting records in PLN, IFRS regulations mandated the conversion of each individual transaction from PLN to EUR, followed by a retranslation of financial results into PLN as the presentation currency for financial statements. This complex process demanded precision and full compliance with international accounting standards.
Our Solution:
To ensure full compliance with IFRS and accurate reporting, we implemented the following steps:
Detailed transaction-level currency conversion – We meticulously analyzed each accounting transaction and converted all amounts from PLN to EUR using appropriate exchange rates in line with IFRS requirements. After calculating EUR-based results, we retranslated the financial statements into PLN, ensuring that the presentation currency reflected accurate financial data.
Support during financial audit – We worked closely with the client’s auditors, providing all necessary recalculations and justifications for the applied conversion methodologies.
Our collaboration ensured that the financial statements met IFRS standards and received a positive audit opinion.
Translation of the financial statements – Upon completion, we translated the final financial statements into English to facilitate communication with international stakeholders.
Results:
100% of transactions correctly converted into EUR as the functional currency.
Full IFRS compliance, confirmed by the auditor’s approval.
Timely submission of financial statements.
Professional English translation, enabling seamless communication with international investors and regulatory bodies.
Conclusion:
This project demonstrated our expertise in handling complex international financial reporting requirements. Our precise execution ensured that the client successfully met global accounting standards, allowing them to focus on other strategic financial initiatives within the company.
share article:
