Case Studies: IT services

We were approached by our client, an IT services company whose shares are traded on PLUS Markets, to prepare IFRS-compliant financial statements for the year ended 31 March 2008.

Though this was the second year of producing IFRS financial statements, the client required a higher level of technical and strategic support than had previously been available to them.

We reviewed the financial statements and then translated them into IFRS format, compliant with accounting standards and PLUS reporting requirements. Technical issues arose, including fair value of financial derivatives and debt, goodwill impairment and valuation of warrants. Our brief included preparation of 18-month forecasts to provide comfort on going concern. We provided significant input to the accompanying narrative included in the Chairman’s and Chief Executive‘s reports.

In addition, our role was to act as the focal point for any internal and external queries on the financial statements which required close liaison with auditors and financial advisers.

Furthermore, FD Solutions acted as a ‘sounding board’ for any concerns and questions - including strategic advice - raised by the board, which wasn’t limited to the financial statements.

Once the IFRS financial statements had been signed off by the auditors, we were asked to provide input to the market announcement, which was successfully achieved, the company having met PLUS Markets reporting deadlines.

The company decided to use us in order to prepare its IFRS-compliant interim results for the six months ended 30 September 2008. Having established the methodology when carrying out work on the final results, this work was completed within six working days, including input to the market announcement.

The company will be using FD Solutions when it comes to preparation of IFRS financial statements for the year to 31 March 2009.

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