Collaboration between Grant Thornton Cambodia and Grant Thornton Philippines in implementing CIFRS for banks in Cambodia
Implementing new accounting standards, notably International Financial Reporting Standards (IFRS), poses a challenge to many organizations with public accountability. Businesses need to modify their processes to align with global practices and financial statements have to be ‘converted’ or ‘adjusted’ as part of the transition.
In Cambodia, public accountable entities, such as listed companies, banks, microfinance institutions, and insurance companies, as well as large private companies, are required to apply Cambodian International Financial Reporting Standards (CIFRS), which is equivalent to IFRS, in preparing their financial statements. To assist financial services clients in transitioning to CIFRS, Grant Thornton Cambodia tapped the expertise of P&A Grant Thornton (Grant Thornton Philippines).
Grant Thornton Philippines has years of experience in helping clients, especially those in the financial services industry, to adopt IFRS. Public companies in the Philippines have been applying IFRS since 2005. The audit practice of Grant Thornton Philippines is among the largest in the region with 11 partners and more than 380 staff.
The Cambodian and the Philippines teams (CIFRS conversion teams) worked with key officers of bank clients, by reviewing accounting materials and examining records and supporting documents to get a better understanding of the current accounting policies and transactions of bank clients in Cambodia. The advisory practice of Grant Thornton Philippines has provided additional support by developing expected credit loss (ECL) models and manuals for Cambodian bank clients.
The CIFRS conversion teams recommended focusing on the implementation of IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers, IFRS 16 Leases, and IFRS 19 Employee Benefits. In addition, the Philippines member firm assists Grant Thornton Cambodia in addressing transition issues as they arise.
The CIFRS conversion teams have already completed five CIFRS conversion engagements to-date and continue to pursue opportunities in this area.