Why the choice of advisor matters

IFRS transformation is not a mechanical process. Most standards involve judgement: which costs to capitalise, how to determine the functional currency, how to identify performance obligations in a multi-element contract. The quality of those judgements depends directly on the advisor.

Mistakes made during the transformation tend to surface later in questions from the auditor or the investor — and they are expensive to fix.

Big 4 vs boutique firms vs freelancers

Big 4 firms bring brand, methodologies, resources for large projects and a direct link to their audit practices. The downsides are high cost, staff rotation and work largely done by junior or mid-level staff, with partners appearing only at key meetings.

Boutique firms (such as FTH) give consistent access to senior practitioners, are more flexible and usually cheaper. The trade-off is limited capacity — large group consolidations across 20+ jurisdictions are usually beyond their scope.

Freelancers are the cheapest option, but without quality control processes, backup or formal accountability. For a one-off task this can work; for a serious project it is a risk.

Seven questions to ask an advisor

Before signing the contract, ask the following:

  • How many transformation projects for Ukrainian IT companies has your team delivered in the last 24 months?
  • Who specifically (by name) will work on our project?
  • Which standards will be most challenging for our business and why?
  • How do you document judgements and adjustments?
  • Are you willing to engage directly with our auditor?
  • What happens if the auditor disagrees with your judgement?
  • Can you show an anonymised example of a working file or memo?

Red flags

A few signs that should make you pause:

  • the advisor promises to "do everything in a week",
  • does not ask about the specifics of your business before signing,
  • cannot name the adjustments that will be typical for your model,
  • avoids direct contact with the auditor,
  • cannot show any example documentation, even anonymised,
  • insists on payment contingent solely on a clean audit opinion.

What to put in the contract

The contract should fix a clear list of deliverables: financial statements for the period, accounting policy, adjustment schedules, memos on judgements, working files. The format of each item should be specified.

Separately, set out the engagement schedule, the client's responsibility for delays, support during the audit, confidentiality and the cost of additional scope.

What a normal process looks like

A typical transformation project for a mid-sized IT company runs for four to eight weeks. The first week is diagnostic and gap analysis, then two to three weeks of methodology and adjustments, followed by one to two weeks of statement preparation and one week to align with the auditor.

If an advisor offers to do everything in a week, the work will either be a sham or incomplete. If they propose six months without a clear structure, methodology is probably missing on their side.

Conclusion

Choosing an advisor is an investment of trust. Look not at brand or price but at the specificity of answers, the transparency of the process and the willingness to own the judgements.

A good advisor will not only prepare the statements but also leave your team with a working methodology you can reuse in future periods.