Financial Auditing
Independent financial due diligence and audit support aligned with Iranian Accounting Standards and IFRS.
Iranian companies report under Iranian Accounting Standards, which differ in important ways from IFRS — particularly around inflation accounting, foreign-currency translation, and related-party disclosures. Our financial team rebuilds the target's numbers into a format your board and lenders can read, and flags the adjustments that matter for valuation.
What’s Included
Quality of Earnings
Normalisation of reported EBITDA for one-offs, related-party transactions, and FX distortions.
- Run-rate adjustments
- Owner add-backs
- Subsidy normalisation
- FX impact analysis
- Working-capital review
Tax Position Review
Verification of corporate tax, VAT, and payroll positions with the Iranian National Tax Administration.
- Tax certificates
- Assessed vs. declared
- VAT reconciliation
- Withholding compliance
- Open assessments
Debt & Cash Walk
Bridge from reported cash and debt to net debt usable in an enterprise-value calculation.
- Bank confirmations
- Off-balance-sheet items
- Shareholder loans
- FX-denominated debt
- Working-capital normalisation
IFRS Conversion
Translation of Iranian-GAAP statements into IFRS-equivalent format for foreign-investor consumption.
- Revenue recognition
- Lease treatment
- Impairment testing
- Deferred tax
- Pension liabilities
Forensic Review
Targeted procedures where related-party flows or undisclosed liabilities are suspected.
- Journal-entry testing
- Vendor-master review
- Cash-flow tracing
- Inventory verification
- Whistleblower follow-up
Statutory Audit Liaison
Coordination with the target's Iranian statutory auditor and the Securities & Exchange Organization.
- Auditor briefing
- SEO filings review
- Management-letter follow-up
- Subsequent-events review
- Board reporting
How We Engage
Engagement Scoping
Define materiality, look-back period, and key value drivers.
Information Request
Issue a structured data request and chase outstanding items.
On-site Procedures
In-person review of ledgers, contracts, and physical assets at the target.
Red Flag Memo
Interim findings memo so deal terms can be re-negotiated early.
Final Report
Detailed financial DD report including adjusted EBITDA, net debt, and working-capital target.
Get a Defensible Financial Picture
Commission an IFRS-equivalent financial DD report before you fix your offer price.
Iranian GAAP to IFRS, with an EBITDA bridge your IC can defend
We rebuild the target's reported numbers on an IFRS basis, isolate the adjustments that move price, and quantify open tax and FX exposures.
What you receive
Engagement timeline
Packages & indicative fees
24-month review for SME or carve-out targets.
- Adjusted EBITDA
- Top-10 normalisations
- Working-capital trend
- 20-page memo
Standard buy-side scope for mid-market deals.
- 36-month look-back
- Net debt walk
- Tax exposure
- IFRS restatement
- Linked Excel pack
Bankable report for ECA, DFI, or syndicated debt.
- Auditor coordination
- Covenant modelling
- Sensitivity & stress tests
- Bank pack annexes
- Roadshow support
Fees are indicative ranges for typical scopes. Final proposal is fixed after a scoping call.
Mini case study
Challenge
Validate a USD 90m petrochemical acquisition with reported EBITDA inflated by FX gains and related-party pricing.
Outcome
Normalised EBITDA was 18% below management report, repriced bid down USD 11m, and surfaced USD 4.2m in unprovided tax exposure ring-fenced via escrow.
Frequently asked questions
Iranian-GAAP to IFRS, translated for your investment committee
Iranian Accounting Standards (IAS) diverge from IFRS on inflation accounting, FX translation, lease treatment, and related-party disclosure. Our finance team rebuilds the target's numbers into a format your board, lenders, and external auditor can read — and isolates the adjustments that move the price.
Quality of earnings
Reported EBITDA is normalised for FX gains, subsidy income, related-party pricing, and one-off items — the version a buyer actually pays for.
Net debt walk
Reported cash and debt are bridged to enterprise-value net debt, capturing shareholder loans, FX-denominated facilities, and off-balance-sheet items.
Tax exposure
Open assessments with the Iranian National Tax Administration are quantified with a recommended escrow or indemnity.
Frequently asked questions
Why does Iranian GAAP matter if I am buying via a Dutch or DIFC holding?+
Because the operating entity files locally under IAS, and the tax base is built on those filings. Your holding-level IFRS accounts inherit the IAS-driven cash flows, so the differences flow through to your model whether you see them or not.
Do you handle inflation accounting?+
Yes. From FY2022 onward, Iranian standards require IAS 29-style inflation adjustments. We re-perform those calculations and restate to a stable-currency basis your committee can interpret.
Can you coordinate with the target's statutory auditor?+
Yes — with the target's written consent we engage the existing auditor for management-letter review, subsequent-events procedures, and going-concern support.
What format do you deliver?+
A detailed report with an adjusted-EBITDA bridge, a net-debt schedule, a normalised working-capital target, and an Excel workbook with all source data linked.