Transitioning from FAS-Based Accounting to IFRS Standards
Hakoköngäs, Krista (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025051411681
https://urn.fi/URN:NBN:fi:amk-2025051411681
Tiivistelmä
Internationally comparable financial reporting has become increasingly critical due to the globalization of financial markets. Finnish Accounting Standards, FAS, and other local standards must now be replaced by IFRS for publicly traded companies, except for First-North Finland stock. This thesis examines the key differences between FAS and IFRS, analyses the financial impacts and risks associated with transitioning to IFRS, and offers practical recommendations for managing the change. The case study was commissioned by Administer Group, a Finnish company specializing in business management services.
A multi-method research approach was used, combining a literature review, comparative financial statement analysis, and a qualitative interview. The study focuses on IFRS topics most relevant to the case company, including revenue recognition, leasing, goodwill, segment reporting, and impairment testing. The findings highlight that while FAS prioritises creditors and tax authorities, valuing the income statement, IFRS emphasises investor needs, balance sheet valuation, and transparency through extensive disclosures.
The interview emphasised that motivation and internal competence are critical success factors for a smooth transition. Delegating the process entirely to external consultants without involving and educating the company’s own finance team was identified as a key risk. Tools such as the COSO ERM framework and the Business Model Risk Matrix were applied to identify risks, while the Balanced Scorecard and Total Cost of Ownership methods helped evaluate the financial impacts.
As a practical outcome, a transition roadmap was developed for Administer Group, outlining the key steps and internal competencies needed for successful IFRS implementation. The thesis contributes both theoretical insights and hands-on tools for companies considering or preparing for IFRS adoption.
The study finds that the transition from FAS to IFRS has an impact on internal processes, especially those related to disclosure and transparency, as well as the financial presentation. Moreover, it concluded that internal competence and engagement are important drivers of transition management.
A multi-method research approach was used, combining a literature review, comparative financial statement analysis, and a qualitative interview. The study focuses on IFRS topics most relevant to the case company, including revenue recognition, leasing, goodwill, segment reporting, and impairment testing. The findings highlight that while FAS prioritises creditors and tax authorities, valuing the income statement, IFRS emphasises investor needs, balance sheet valuation, and transparency through extensive disclosures.
The interview emphasised that motivation and internal competence are critical success factors for a smooth transition. Delegating the process entirely to external consultants without involving and educating the company’s own finance team was identified as a key risk. Tools such as the COSO ERM framework and the Business Model Risk Matrix were applied to identify risks, while the Balanced Scorecard and Total Cost of Ownership methods helped evaluate the financial impacts.
As a practical outcome, a transition roadmap was developed for Administer Group, outlining the key steps and internal competencies needed for successful IFRS implementation. The thesis contributes both theoretical insights and hands-on tools for companies considering or preparing for IFRS adoption.
The study finds that the transition from FAS to IFRS has an impact on internal processes, especially those related to disclosure and transparency, as well as the financial presentation. Moreover, it concluded that internal competence and engagement are important drivers of transition management.