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, 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.