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Consolidation & Reporting: IFRS and standards,
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Julien Herouard, Consolidation & Reporting Manager at Primexis, shares in this interview his expertise regarding outsourcing missions for the consolidation function and IFRS and regulatory accounting advice. He discusses the missions he has conducted with French and international groups and the major challenges encountered by clients, notably the transition from French standards to IFRS standards.

Can you introduce yourself?

My name is Julien Herouard, I am a Consolidation & Reporting Manager at Primexis. I joined the firm in 2015, and I am specialized in consolidation outsourcing assignments and accounting advisory services. I handle both French Accounting Standards Authority (ANC) No. 2020-01 and IFRS consolidations.

What type of mission are you working on?

I recently assisted a French engineering group with around 60 subsidiaries in a new LBO (Leverage Buy Out) under the ATAD scheme. First, I calculated the goodwill of the acquisition holding company. Second, I estimated the value of the equity and aggregate assets and liabilities at the end of the first fiscal year. And third, I compiled various debt ratios to estimate the value of net financial expenses to be deducted in the future.

What are our clients’ main challenges?

I can think of 4. The first challenge is current standards and regulations.

We are currently witnessing a major project, Pillar II, which will impact 50,000 companies in Europe. It will be necessary to work with in-house tax teams and the consolidator who has the data. A second challenge relates to all aspects of corporate restructuring. These include acquisitions and transfers and their impact on the accounts, for example, IFRS 5. A third challenge is establishing new regulatory reporting. I could mention XBRL (eXtended Business Reporting Language) and CSRD reporting on green taxonomy. And a fourth challenge that we were called upon to meet is the transition from French standards to IFRS standards or first-time consolidation projects.

How is a mission organized?

To circle back to the last point, which is the transition from French standards to IFRS, Primexis assisted a major French player in the infrastructure and environment sector. We divided the assignment into 3 phases:

• – An initial diagnostic phase in which we studied the IFRS restatements that would have an impact in this sector of activity. 
• – A second phase, more of an FTA (First Time Application). We calculated the impacts between the 2 standards and also adapted the reporting tool.
• – And a third phase, an operational phase, in which we trained the in-house teams and also wrote a consolidation procedure book.

Tell us about an experience that particularly struck you?

One of my most memorable experiences was working with a mid-cap French company in the industrial sector. The entire finance department, including the CFO, left close to the new tax ruling. They had been under a lot of pressure with regard to financial communications and new investors.

Primexis was a long-standing partner of the group, so I stepped in with the help our of accounting department and with the help of an interim CFO. During this assignment, I played two roles: FP&A controller, where I was in charge of monthly reporting management and also supervised statutory consolidation.

As a result, I also had to set up reporting tables to calculate covenant ratios for new lenders. The assignment went very well, and we continue to work with the group on a frequent basis.

What does the “IFRS & regulatory accounting advisory” service offer?

Primexis works with listed or unlisted groups of all sizes and in any sector of activity. Our clients include family groups, investment funds, and also groups resulting from LBOs or spin offs. We have a team of 50 recognized experts in the Consolidation and Reporting market. We can help you meet organizational challenges and develop decision-making tools.

Do you need help implementing new IFRS accounting standards? Would you like to set up a new Pillar II reporting system – CBCR, Taxonomy, or CSRD? Primexis can guide and assist you with all changes in standards and regulations. To learn more about our IFRS and Regulatory Accounting Advisory Services

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The full testimonial is available on Primexis’ Youtube channel.