Restaurant Chain's Global Expansion: Navigating IFRS

How we helped a restaurant chain navigate IFRS standards and compliance while converting from US GAAP.

Client

Our client, a well-known private equity-owned restaurant chain, had plans to go public in another country. This expansion required them to comply with International Financial Reporting Standards (IFRS) for their financial reporting.

Challenge

Their primary challenge was converting US GAAP financial statements to IFRS. This required a deep understanding of both accounting frameworks and meticulous attention to detail.

The inherent complexities of IFRS, particularly for a large, multi-entity restaurant business, presented a significant hurdle to their public offering timeline. They recognized the need for specialized knowledge to create a smooth and compliant transition, rather than attempting this intricate conversion internally or with a firm lacking specific IFRS conversion experience.

Approach

Our team led with a highly collaborative process involving multiple parties that included the private equity firm, client’s internal team, legal counsel, and IFRS auditor. This upfront engagement was necessary to identify key areas that required in-depth analysis and create alignment from the outset.

Accounting Compliance

We developed comprehensive accounting policy memorandums, meticulously crafted in accordance with IFRS standards. These policies were designed to maintain strict compliance and harmonize with the client's existing accounting practices when possible.

IFRS Streamlining

We incorporated all applicable practical expedients permitted under IFRS to streamline implementation and reduce unnecessary complexity. The policies addressed critical areas, including revenue recognition, leases, variable interest entities, business combinations, and stock-based compensation.

Results

Our firm's commitment to delivering exceptional service was exemplified by our work on a client's U.S. GAAP to IFRS financial statement conversion. The direct involvement of our senior executives, coupled with the high quality of our deliverables within a tight deadline, demonstrably exceeded the client's expectations.

As a direct result, the client expanded our engagement, entrusting us with preparing their consolidated IFRS financial statements and audit support. This expansion reflects the client's confidence in our team and underscores our ability to build strong, lasting partnerships through dedicated service and superior outcomes.

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