I have been trying to locate some guidance but struggling to find any good article summarising the process for the following.
A UK subsidiary of a US parent company will usually prepare their management accounts (via whichever accounting system the group use) according to US GAAP. However, being a UK entity their statutory accounts will need to be prepared and filed according to UK GAAP (or FRS 102).
What is the process that needs to be carried out when filing the year end accounts? Are these what you would call a US GAAP to UK GAAP stat adjustments? So effectively you would need to restate the numbers in the draft statements (year end management accounts) to what they would have been if the accounting standards applied in the system would have been UK GAAP?
If the group adopts IFRS then I assume there would be no need to perform any stat adjustments because the both the draft financial statements and year statutory accounts will be prepared under IFRS and they would be disclosed as being prepared under IFRS?
Thank you in advance