§ CONV-02 — IFRS & GAAP Conversion
Financial Statements That Speak the Right Language — Wherever You're Reporting
Moving into a new market, preparing for a cross-border listing, or responding to an investor's request for restated accounts — framework conversion is precise work. Cladeon handles the full process, from identifying the differences to producing restated statements your stakeholders can rely on.
§ CONV-02
|Engagement Fee: $5,500 USD
§ 1.0 — What This Service Delivers
Restated Statements That Accurately Reflect the Target Framework
A framework conversion is more than a formatting exercise. IFRS and US GAAP treat revenue recognition, lease accounting, financial instruments, and impairment differently — among many other areas. Converting financial statements between them requires identifying each difference, quantifying the adjustment, and producing restated figures that hold up to scrutiny.
This service delivers converted financial statements along with the full documentation that explains how each adjustment was derived. Your stakeholders — investors, regulators, auditors — receive outputs they can follow and verify.
Converted financial statements — balance sheet, income statement, cash flow — restated to the target framework
Adjustment schedules showing each conversion difference, the applicable standard reference, and the quantified impact
A mapping document that explains in plain language what changed between frameworks and why
Disclosure notes updated to reflect the requirements of the target framework
§ 2.0 — Where Organizations Encounter This Challenge
Framework Differences Are Significant — and They Need to Be Handled Correctly
Market Expansion
A company reporting under local standards that begins operating in a jurisdiction where IFRS is required — or vice versa — faces a conversion requirement that can't be handled by simply relabelling line items.
The underlying recognition and measurement rules differ in ways that affect reported profits, assets, and equity — sometimes materially.
Cross-Border Listings
A company preparing for a listing on an exchange that requires US GAAP reporting — when its current statements are prepared under IFRS — needs restated financials that satisfy the relevant securities regulator.
This isn't a one-time administrative task. It requires a structured conversion with auditor-ready documentation.
Investor Requirements
International investors or financing partners sometimes request restated financials in a different framework as part of their due diligence or reporting obligations.
Without a proper conversion — including the mapping document — those requests can stall deals or introduce doubt about financial transparency.
§ 3.0 — Cladeon's Approach to Conversion
Methodical Identification of Differences, Documented at Every Step
Every conversion engagement starts with a careful comparison of the source framework against the target. We work through each significant accounting area — revenue, leases, financial instruments, impairment, share-based payments, and others — and identify where the two frameworks diverge for your specific transactions and balances.
Adjustments are calculated individually and documented with the relevant standard reference. The mapping document explains each change in terms that finance teams, board members, and auditors can follow — without requiring them to work through the adjustment schedules themselves.
The restated statements are produced only after the adjustment schedules have been reviewed and confirmed. Your team has a clear view of what changed and why before the final output is delivered.
Area-by-Area Difference Analysis
We go through each accounting area systematically — not just the obvious ones. Less visible differences, such as deferred tax implications of conversion adjustments, are captured and included.
Quantified Adjustment Schedules
Each adjustment is calculated with reference to your actual figures. The schedules show the movement from source to target for every affected line, tied to a standard reference and a narrative explanation.
Plain-Language Mapping Document
The mapping document accompanies the restated statements and explains each conversion adjustment in terms that don't require a technical accounting background to follow. It's the document your stakeholders will reach for when they have questions.
§ 4.0 — Working Through a Conversion Engagement
A Structured Process With Your Team Involved at Key Stages
Conversion work requires input from your finance team — particularly around transactions that require judgment under either framework. Here's how the engagement typically unfolds.
Framework Assessment
We review your existing financial statements and identify the accounting areas where IFRS and GAAP diverge in the context of your specific transactions, balances, and industry.
Adjustment Calculation
Working from your source data and statements, we calculate each conversion adjustment and build the schedules. Areas requiring judgment are discussed with your team before figures are finalized.
Review & Confirmation
The adjustment schedules and draft restated statements are shared with your team for review. Queries are addressed and refinements made before the final output is assembled.
Final Delivery
Restated financial statements, adjustment schedules, and the mapping document are delivered as a complete package. The documentation is structured for use with auditors, regulators, or investors as needed.
§ 5.0 — Investment
A Single Engagement Fee for the Complete Conversion Package
$5,500
USD per engagement
The engagement fee covers the full conversion process — from the initial framework assessment through to delivery of the complete output package. The mapping document and adjustment schedules are included as standard, not extras.
Engagements involving multiple reporting periods or particularly complex transaction structures will be scoped accordingly, with a clear outline provided before work begins.
What's Included
Area-by-area framework difference analysis tailored to your transactions
Quantified adjustment schedules with standard references and narrative explanations
Restated financial statements (balance sheet, income statement, cash flow) in the target framework
Updated disclosure notes reflecting the target framework requirements
Plain-language mapping document explaining each conversion adjustment for stakeholder use
Deferred tax implications of conversion adjustments identified and included
§ 6.0 — Standards & Methodology
How We Ensure the Conversion Holds Up to Examination
Standard-Referenced Work
Every adjustment in the schedules is referenced to the applicable IFRS or US GAAP standard — IFRS 16, ASC 842, IFRS 9, ASC 606, and so on. Nothing is attributed to a framework without a traceable basis.
This matters when auditors or regulators review the conversion. They need to see the reasoning, not just the numbers.
No Skipped Areas
The most common conversion errors come from areas that appear straightforward at first — such as presentation differences, comparative period restatements, or deferred tax consequences — being handled superficially.
Our process works through each area regardless of whether the initial review suggests it will produce a material adjustment.
Realistic Timelines
A proper conversion engagement — particularly for a company with complex transactions — takes time to do carefully. We set a timeline at the outset that allows for the review rounds that quality work requires.
If you have a fixed external deadline, we'll tell you clearly whether the timeline is workable before any work begins.
§ 7.0 — Our Commitment
Clarity Before Commitment
Before the engagement begins, we'll assess your source statements and outline where we expect the significant conversion differences to sit. If there are areas of particular complexity — judgment-intensive transactions, unusual structures, or legacy positions that weren't cleanly resolved under the source framework — we'll flag them at the outset rather than partway through.
The initial conversation carries no obligation. It's an opportunity to understand your situation properly and explain how the engagement would work before you decide whether to proceed.
The documentation we produce — schedules, mapping document, restated statements — is yours to use with auditors, investors, or regulators. It's structured to be self-explanatory, so you're not reliant on us to explain the conversion to third parties.
§ 8.0 — Getting Started
How to Begin a Conversion Engagement
The starting point is a conversation about your situation — which frameworks are involved, what you need the restated statements for, and whether there are external deadlines to work toward.
Step One
Describe Your Situation
Use the contact form to tell us which frameworks are involved, what you're converting from and to, and the purpose of the restated statements. The more context you provide, the more useful the initial conversation will be.
Step Two
Scoping Conversation
We'll review the key accounting areas and discuss the complexity involved. At this stage we'll also confirm whether the timeline you're working to is achievable and what the engagement would look like in practice.
Step Three
Engagement Confirmed
Once terms are agreed, we'll request the source statements and supporting data needed to begin. From that point, progress is communicated regularly and your team is consulted at each review stage.
§ 9.0 — Start the Conversation
Facing a Framework Conversion Requirement?
Get in touch and describe your situation. We'll outline what the conversion engagement would involve, what we'd need from your team, and what the output would look like — before any commitment is made.
Get in Touch§ 10.0 — Other Services
Explore the Full Service Range
§ REG-01
Regulatory Financial Reporting
Preparation and filing of financial reports required by regulatory authorities — annual returns, periodic disclosures, and special-purpose filings, with full correspondence management.
From $3,800 USD
View Details§ MON-03
Compliance Monitoring & Calendar
Ongoing tracking of filing deadlines and reporting obligations across multiple jurisdictions. Monthly status reports, advance reminders, and submission support included throughout.
$1,500 USD/month
View Details