Study of International Financial Reporting Standards (IFRS) at AJMS

Global Consulting

PRACTICAL TRAINING REPORT

Submitted By

Name: - VINAY KUMAR PATNI

Institute Roll No. MBA/2022/4470
Session: - 2022-24
Training Period: - 4th September 2023 to 31st October 2023 Days 57

Submitted To
Dr. Bhumija Chouhan

Department of MBA

(International School of Informatics and Management)

(Batch – 2022-2024)
 Acknowledgment

I would like to express my gratitude to AJMS Global Consulting for giving me this

opportunity to work with their organization. It was a great chance for learning, I am grateful

for being giving a chance to which has helped me learn and develop my skills for the

professional world. I feel extremely lucky that I was part of such a big organization. I was

able to meet and interact with many people, who have guided me and help me with my

project. They helped me to perform my duties properly. A special thanks to Mr. Vinit Jain

(Associate Partner) at AJMS Global, for his constant support and guidance despite of his busy

schedule. Also, for assigning me this wonderful project and believing that I am capable for

the same. Also, I would use this platform to thank my Mentor Dr. Bhumija Chouhan along

with the members of Placement Cell, International School of Informatics & Management, for

sharing their experience with us and guiding us.

(Vinay Kumar Patni)

(MBA/2022/4470)
IIIM, Jaipur
 Declaration

I undersigned Vinay Kumar Patni student of MBA 3rd semester declare that I have done the

project on study of Finance Analysis. It has been personally done by me under the guidance

of Prof. Bhumija Chouhan in partial fulfillment of MBA program during academic year 2022-

24. All the data represented in this project is true and correct to the best of my knowledge and

belief.

Date:- Vinay Kumar Patni

Table of Content
1. Certification

2. Executive Summary

3. Company Profile
 About organization
 Vision and Mission
 Services offering
 AJMS Group Companies
 Notable Achievements
4. Objective Of Study
5. Need Of Study
6. Limitation Of study
Executive Summary

This Project report focus on the work experience. I have gathered as a Finance Analysist at

AJMS Global Consulting. This Project work started from 4 th of September 2023. In this

report, I have mentioned my project work study on Accounting Standards. During this tenure,

I mainly have incorporated my experience into integration work. The project report is based

on the study of the Finance Analysist in AJMS Global Consulting. My role for the first month

was in organization was to do Integration.

 About The Organization

AJMS Global Consulting (“AJMS”) is a boutique consulting firm specializing in providing

niche consulting proposition to its clients in the area of Strategy, Tax, Risk, Compliance,

IFRS advisory, Distress advisory and Digital Transformation Advisory. The firm is led by Mr.

Abhishek Jajoo, Founding Partner & CEO and comprises of professionals who have

experience of working as Bankers, Regulators, Auditors and Legal Advisors. Currently,

AJMS has presence in 14 cities across 10 countries with its headquarters in UAE.

AJMS provides comprehensive and factual consulting experience to its clients to equip them

for an informed decision-making resulting in a business growth that has larger value creation

for stake holders and empowers its employees. The firm assists organizations to effectively

monitor and manage risks, ensure compliance with regulatory requirements and expand the

business horizon with innovative ideas. Their expertise in an array of services provides

valuable insights to the clients which helps them to explore market conditions, mitigate risks

and boost revenue.

 Vision And Mission of organization

Vision

AJMS Global aims to be a synonym of quality in the industry in which they work and for the
clients they work with

Mission

AJMS Group aims to create an ecosystem that brings together world’s intelligentsia in the
fields of technology, compliance, risk, tax, and corporate consulting
 Services Offerings

Governance, Risk & Compliance (GRC) Services

• IFRS Advisory
• AML Advisory
• Business Process Outsourcing
• Risk and Internal Audit
• Regulatory Consulting

Management Consulting

• Strategy
• Sustainability
• Transaction Advisory
• Distress Advisory
• HR Consulting

Tax Advisory
• Direct Tax
• Indirect Tax
• Transfer Pricing
• International Tax
 AJMS Group Companies

AJMS
GLOBAL
CONSULTIN
G

AINSURTEC
H, INDIA

REMITEX INFINITEC
TECHNOLO
GIES H

A) AJMS GLOBAL CONSULTING

 IFRS Advisory and Implementation

 Corporate Finance Advisory
 Capital Restructuring
 Mergers & Acquisition (M&A) Advisory
 ESG Services
 VAT Advisory and Implementation
 Enterprise Risk Management and Risk Analytics
 Compliance Advisory
 Internal Audit Assurance
 Anti-Money Laundering Audit Assurance
 Distress Advisor

B) REMITEX TECHNOLOGIES

RegTech Solution Provider

  AML Sanction Screening Solution
 Transaction Monitoring System
 Customer Risk Assessment Solution
 Digital KYC Onboarding Solution

C) AINSURTECH, INDIA

RegTech Solution Provider focused on insurance sector:

 ADPT
 SMRT
 iMAP

 RAPD

D) INFINITECH

A Fintech Company focused on promoting financial inclusion for underbanked people. Key
features include:
 E-wallet
 Open Loop Cards
 Salary transfer
 Micro-investment
 Micro-finance
 Insurance

Notable Achievements
 Awarded UAE Super brand 2020, 2021 and 2022
 ACCA Approved Employer
 MOU with Dubai Economic Development to promote AML Compliance across
various sectors
 ISO9001:2015 Certified
 Awarded Excellence in Finance Consulting
 Appointed by Hamdan University to conduct Academic Study on Islamic Banking
Industry
 Exclusive Partner of Elsa Speak - AI Driven Educational Technology
 Awarded “Excellence in Finance Consulting” Award by prestigious FINNEXT
association, USA
 Signed an MOU with Dubai Economic Department, as their preferred partner, for
creating awareness of new AML law for multiple sectors.
 AInsurtech’s ADPT Tool awarded IFRS 17 Solution of the Year 6th Insure Tek Golden
Shield Excellence Awards 2022
 Objective of Study

 To examine the effectiveness of International Financial Report Standard (IFRS)

management polices with the help of accounting.

 To evaluation the financial performance of the company.

 To make suggestion for policy makers for effective management.

 Need of the study

 The projects are helpful in knowing the company's position of funds maintenance and
setting the standards for IFRS & IAS.

 This project is helpful to the management for expanding the dualism and the project
viability and present availability of funds.

 This project is also useful as it companies the present year data with the previous year
data and thereby it shows the trend analysis i.e., increasing fund or decreasing fund.

 The project is useful in further expansion decision to be taken by Management.

 Limitation of the study

The following are the various aspects involved in the analysis of

 Study is based on information provided by the company

 Study the International financial Reporting Standard (IFRS) is totally differed from
Indian Accounting Standard (IAS)

 The Analysis is limited to just 5 years of data study

 Limited Interaction with the concerned heads due to their busy schedule.
 Introduction to IFRS

International Financial Reporting Standards (IFRS) are a set of accounting

rules for the financial statements of public companies that are intended to
make them consistent, transparent, and easily comparable around the world.
IFRS currently has complete profiles for 167 jurisdictions, including those in
the European Union.

 International Financial Reporting Standards (IFRS) were created to bring

consistency and integrity to accounting standards and practices, regardless
of the company or the country.
 They were issued by the London-based Accounting Standards Board
(IASB) and address record keeping, account reporting, and other aspects of
financial reporting.
 The IFRS system replaced the International Accounting Standards (IAS) in
2001.
 IFRS fosters greater corporate transparency.
 IFRS is not used by all countries; for example, the U.S. uses generally
accepted accounting principles (GAAP).

Understanding International Financial Reporting Standards (IFRS)

IFRS specify in detail how companies must maintain their records and report their
expenses and income. They were established to create a common accounting
language that could be understood globally by investors, auditors, government
regulators, and other interested parties.
 The standards are designed to bring consistency to accounting language,
practices, and statements, and to help businesses and investors make
educated financial analyses and decisions.

They were developed by the International Accounting Standards Board, which

is part of the not-for-profit, London-based IFRS Foundation. The Foundation
says it sets the standards to “bring transparency, accountability, and efficiency
to financial markets around the world

IFRS vs. GAAP

Public companies in the U.S. are required to use a rival system, the generally
accepted accounting principles (GAAP). The GAAP standards were developed by
the Financial Standards Accounting Board (FSAB) and the Governmental
Accounting Standards Board (GASB).

The Securities and Exchange Commission (SEC) has said it won't switch to
International Financial Reporting Standards but will continue reviewing a
proposal to allow IFRS information to supplement U.S. financial filings.3

There are differences between IFRS and GAAP reporting. For example, IFRS is
not as strict in defining revenue and allows companies to report revenue sooner. A
balance sheet using this system might show a higher stream of revenue than a
GAAP version of the same balance sheet.

IFRS also has different requirements for reporting expenses. For example, if a
company is spending money on development or on investment for the future, it
doesn't necessarily have to be reported as an expense. It can be capitalized instead.
Standard IFRS Requirements

IFRS covers a wide range of accounting activities. There are certain aspects of
business practice for which IFRS set mandatory rules.

 Statement of Financial Position: This is the balance sheet. IFRS

influences the ways in which the components of a balance sheet are
reported.
 Statement of Comprehensive Income: This can take the form of one
statement or be separated into a profit and loss statement and a statement of
other income, including property and equipment.
 Statement of Changes in Equity: Also known as a statement of retained
earnings, this documents the company's change in earnings or profit for the
given financial period.
 Statement of Cash Flows: This report summarizes the company's financial
transactions in the given period, separating cash flow into operations,
investing, and financing

In addition to these basic reports, a company must give a summary of its

accounting policies. The full report is often seen side by side with the previous
report to show the changes in profit and loss

History of IFRS

IFRS originated in the European Union with the intention of making business
affairs and accounts accessible across the continent. It was quickly adopted as a
common accounting language.

Although the U.S. and some other countries don't use IFRS, currently 167
jurisdictions do, making IFRS the most-used set of standards globally.
Who Uses IFRS?

IFRS is required to be used by public companies based in 167 jurisdictions,

including all of the nations in the European Union as well as Canada, India,
Russia, South Korea, South Africa, and Chile. The U.S. and China each have their
own systems.

How Does IFRS Differ From GAAP?

The two systems have the same goal: clarity and honesty in financial reporting by
publicly-traded companies.

IFRS was designed as a standards-based approach that could be used

internationally. GAAP is a rules-based system used primarily in the U.S.

Although most of the world uses IFRS standards, it is still not part of the U.S.
financial accounting world. The SEC continues to review switching to the IFRS
but has yet to do so.

Several methodological differences exist between the two systems. For instance,
GAAP allows a company to use either of two inventory cost methods: First in,
First out (FIFO) or Last in, First out (LIFO). LIFO, however, is banned under
IFRS.
Why Is IFRS Important?

IFRS fosters transparency and trust in the global financial markets and the
companies that list their shares on them. If such standards did not exist, investors
would be more reluctant to believe the financial statements and other information
presented to them by companies. Without that trust, we might see fewer
transactions and a less robust economy.

IFRS also helps investors analyse companies by making it easier to perform

“apples to apples” comparisons between one company and another and
for fundamental analysis of a company's performance.

Source Systems
Data derived from transactional
systems, e.g. policy administration,
claims, application lifecycle
management (ALM) and product
specific systems should have:
• Policy types and features
(insurance, investment)
• Policy inception date,
coverage start and end dates,
premium due dates
• Present cash flows
(premiums and expenses)
• Assess required
enhancements to legacy
systems
• Data segmentation and
grouping
• Data feed to warehouse for
portfolio aggregation
Impact on Systems
Actuarial &Risk Systems
• Define portfolios, groups
and cohorts
• Calculate fulfillment cash
flows, risk adjustments,
CSM built into actuarial
models
• Calculation engine to
incorporate adjustment in
cash flows, discounting, risk
adjustments and CSMs
• Cost allocation to include
incremental expenses in
earned pattern
• Build an integrated system
covering actuarial, allocation
and calculation engines
• Data feed to accounting
systems and data
warehouse
Reporting Systems
• Build IFRS specific
reporting frameworks –
insurance service result,
net financial result, etc.
• Capture change in reports
owing to adjustment in
CSM, risk, cash flows,
discounting
• Retain IFRS 4 reporting for
the parallel run
• Ability to prepare reports
for multiple purposes –
management and public
reporting
Accounting Systems
• Cash flows data from new
actuarial models
• Structure data as per
measurement approach
• Subledger and general ledger
chart of accounts to
incorporate CSM in balance
sheet and CSM adjustments in
insurance service result
• Accounting systems to facilitate
multiple regulation calculations
• Build separate subledger and • Build a new IFRS 17
general ledger or a common reporting layer to cater
system to cater to IFRS 17 to required standards
requirements • Sunset legacy
• Data feed to reporting reporting tools post
systems and data parallel run
warehouse • Data feed from warehouse
and accounting systems
 List of International Financial Reporting Standard

Title Date Issue Effective Date

IFRS-1 First Time Adoption of International 24 Nov 2008 01 July 2009
Reporting Standard
IFRS-2 Share Based Payment 19 Feb 2004 01 Jan 2005

IFRS-3 Business Combination 10 Jan 2008 01 Jul 2009

IFRS-4 Insurance Contract 31March 2004 01 Jan 2005

IFRS-5 Non-Current Assets Held For Sale And 31March 2004 01 Jan 2005
Discounted Operation
IFRS-6 Exploration for and Evaluation of Mineral 09 Dec 2004 01 Jan 2006
Resources
IFRS-7 Financial Instruments: Disclosures 18 Aug 2005 01 Jan 2007

IFRS-8 Operating Segments 30 Nov 2006 01 Jan 2009

IFRS-17 Insurance Contracts 10 May 2017 01 Jan 2023

*All the Above IFRS are in intern working in this file and some other IFRS are also need to no.
 CONCLUSION

On the basis of the study is found that AJMS Global is better services provider than the other

Consultancy because of their timely research and personalized advice. AJMS Global provide

the facility as well as relationship manager facility for encouragement and protect the interest

of the investor. It is providing information through the internet and mobile alerts and it also

provides its research on the future prospect