Accounting advisory services

PwC is a trusted resource for helping companies navigate the financial reporting requirements. How PwC can help:

• Assistance with consolidated financial statements
• Addressing complex consolidation matters
• Setting up a robust consolidation process and structure
• Assistance with stand-alone financial statements
• Meeting disclosure requirements
• Assistance with group reporting

PwC is a trusted resource for helping companies navigate the accounting and financial reporting challenges of business combinations. Mergers and acquisitions can bring many accounting challenges such as: 

• Different accounting standards of the acquirer and acquiree 

• Share based payments 

• Escrow and holdback arrangements 

• Management incentives 

• Call/put options and other rights 

• Recognition of  previously unrecognised assets  (brand name, customer relationships, patents) 

How PwC can help: 

• Preparation of an opening balance sheet as of the acquisition date

• Transitions between different standards (IFRS, Croatian Financial Reporting Standards, US GAAP) 

• Business combination analysis: business versus asset assessment, control assessment , calculation of purchase consideration, recognition and measurement of identifiable net assets acquired, goodwill recognition and measurement 

• Goodwill allocation analysis 

• Preparation of the acquisition note

• Other complex accounting matters related to the acquisition (e.g. share based payments, treatment of escrow and holdback arrangements, management incentives, call/put options and other rights, acquiree's debt repayment on acquisition, transaction expenses and other)

Since FY 2020, EU listed companies have been obliged to prepare their annual reports in the  electronic reporting format (ESEF) and to tag their financial statements with iXBRL tags. Large entrepreneurs will be obliged to prepare their annual reports in the electronic format and to tag their financial statements from FY 2025. Sustainability reports have a mandatory electronic format for FY 2024 and tagging is expected to become mandatory from FY 2025. 

How PwC can help: 

• Mapping the financial statements and notes to the applicable taxonomy

• Mapping the CSRD report to the applicable taxonomy 

• Converting the integrated report into electronic format

• Preparing zip files ready for regulatory submission

Power Purchase Agreements (PPA) are long-term contracts between a buyer (off-taker) and a seller (producer) of renewable energy that allow the buyer to purchase electricity directly or indirectly on a long-term basis at an agreed price, and alternatively to also receive Guarantees of Origin / Renewable Energy Certificates (GO / REC). When the settlement of power purchase agreements is virtual, meaning they are structured as financial swaps, they are referred to as Virtual Power Purchase Agreements (VPPA).  

Accounting for PPAs and VPPAs is complex and may involve multiple IFRS Accounting Standards, including hedge accounting. 

How PwC can help: 

• Training and workshop on PPA and VPPA accounting

• Preparation of models and documentation 

• Reporting obligations

• Periodic updates on models and accounting journals 

• Implementation of hedge accounting

Contracts and transactions that companies enter into are often highly complex and require significant judgment. Careful consideration and analysis of the facts and circumstances of contracts and transactions can have significant upstream and downstream impacts on financial statements and the overall success of the business. Some examples of accounting complexities are: 

• Complex revenue and lease contracts 

• Sale and leaseback transactions

• Complex shareholders’ agreements and control-related matters

• Derivatives and embedded derivatives 

• Contracts modifications 

We apply a disciplined, consistent methodology across our global network. This enables us to maintain our focus on helping you manage change, safeguard compliance, and optimise the quality and efficiency of your accounting function, no matter where or how you do business.

How PwC can help: 

• Analysing background facts and circumstances of the transaction from the financial reporting standards perspective

• Consulting with our global accounting team which ensures global consistency 

• Providing recommendations for the accounting treatment

IFRSs are continuously developing, undergoing review and revision. Changes in existing standards and the introduction of new ones often require the companies to allocate significant resources and investments for their implementation. The success of post-implementation accounting largely depends on the level of effort applied at transition. 

From our experience, adopting new standards takes time, and careful planning is crucial. Establishing a robust implementation roadmap early in the process is critical to ensuring an efficient and successful adoption. 

PwC has a highly credentialed group of professionals with extensive experience helping clients navigate the complexities of the new standards. Contact your PwC advisor to discuss further.