In October 2008, the Securities and Exchange Commission published a clarification to a legal decision. 105-18 Regarding the independence of the auditor, in connection with assistance in preparing and editing financial statements for the audited entity.
This clarification states that drafting and editing financial statements may impair the auditor's independence because in doing so, the accountant cannot audit their own work. Therefore, the Authority announced that it would not consider statements prepared by the auditing accountant as legally audited financial statements, as required by the Securities Law and regulations. In practice, the meaning of this clarification is a complete separation between the party responsible for preparing the financial statements and the party responsible for auditing them.
This is where we come in.
The purpose of the service is to prepare and edit financial reports, annual and quarterly, in accordance with the requirements applicable to public companies and in the IFRS format.
At the beginning of the process, we assemble a professional team for you based on the challenges you face. The team will learn and specialize in all aspects related to your accounting issues and will integrate into your think tank.
The process includes identifying and mapping relevant accounting issues, defining timelines, and establishing a working method suitable for both parties.
As part of the process, the firm's team actively participates in discussions regarding the implementation of accounting standards, including analyzing their impact on the disclosure and presentation in financial statements. The service is provided in cooperation with the statutory auditor, with whom accounting issues that arise during the preparation of financial statements will be discussed.
Examples of some services that can be provided as part of financial statement preparation:
Editing of financial statements for the parent company according to the requirements of the Securities Law and its regulations in IFRS format, including, among others:
- Writing disclosures for financial statements in collaboration with the company's lawyers
- And its managers, as appropriate.
- Consolidation of financial statements and elimination of intercompany profits.
- Currency translation of foreign subsidiary financial statements and creation of a capital reserve from translation.
- Consolidation base data from subsidiary financial statements.
- Tax calculations, including deferred taxes / tax provisions.
- Cash flow statement editing.
- Investment and equity calculation.
- Print financial statements for the parent company.
