Media · Technology · Telecoms

Audit in media & technology –
IFRS for investors – and digital revenue accounting

Technology and media companies face specific accounting challenges: subscription revenue recognition, R&D cost capitalisation, and transformation of financial statements from PAS to IFRS when a foreign investor or PE fund enters.

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20+

Years of experience

100%

Experience in PAS→IFRS transformation

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48h

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PAS to IFRS transformation

First IFRS financial statements

Subscription revenue (IFRS 15)

R&D cost capitalisation (IAS 38)

Audit for PE/VC investors

Media & content companies

Intangible asset valuation

Projects from the media & technology sector

Selected case studies – media & technology

Projects for technology and media companies in investment processes and standards transformation.

PAS → IFRS transformation for a foreign investor

Situation

Polish media/technology company keeping books under PAS. Entry of a foreign strategic investor required preparation of historical and current financial statements under IFRS as a condition for closing the transaction.

Action

Comprehensive accounting transformation: analysis of differences between PAS and IFRS, alignment of accounting policies, retrospective restatement of prior-period statements, and preparation of the first IFRS 1-compliant financial statements.

Result

First IFRS financial statements prepared within the investor's required deadline. Transaction closed on schedule.

Transaction closed on time – IFRS as a condition

Industry challenges

Key accounting challenges in the TMT sector

Revenue recognition (IFRS 15)

Subscriptions, licences, freemium models, advertising revenue, and multi-element arrangements – correct application of IFRS 15 is one of the biggest challenges for technology companies.

R&D cost capitalisation (IAS 38)

When can research and development costs be capitalised, and when must they be expensed in the period? This question arises in every technology company audit.

PAS to IFRS transformation on investor entry

Foreign investors, PE funds, and IPOs require IFRS financial statements. Transformation is not just a format change – it often significantly affects asset values and results.

Employee share option valuation (IFRS 2)

Share option programmes for key employees – their valuation and recognition as a remuneration cost is an area commonly overlooked by companies outside the orbit of large auditors.

Intangible assets and goodwill

Acquisitions in the TMT sector generate high goodwill and intangible asset values – their identification in PPA and annual impairment tests are critical.

SaaS models and ARR – revenue quality

Investors assess SaaS companies through the lens of ARR, churn, and LTV. The auditor verifies that these metrics are consistent with financial data and correctly presented.