About Client

Project Endurance, an industry leader in Electric Vehicle Charging business, has business operations in both mainland China and Hong Kong.

The Challenge

Since the business operation of different departments is disaggregated, the entity faced a significant challenge in gathering scattered information from various reporting units to amalgamate into an organized set of financial statements. Our goal was to prepare a set of management accounts that met the auditor’s requirement, and work with the auditors to carry out audit procedures and issue an auditor’s report.

Our solution

• Prepared adjustments to the management accounts, involving complex accounting treatment with respect to IFRS regarding recognition of revenue, acquisition of fixed assets, payroll, share-based payment, preference shares, and asset impairment assessment
• Revenue: For each revenue stream, identified the revenue recognition standard, and collected underlying supporting to derive the correct revenue figure.
• Fixed Assets: Matched up over 28,000 information points, by reviewing underlying individual contracts
• Conducted external research study on useful life of fixed assets
• Engaged valuer on the valuation of preference shares and share-based payments
• Reviewed payroll and tax compliance, and re-calculated any Chinese IIT, Social Security that were under-accrued
• Reviewed the classification of profit & loss items, and compared the company’s gross profit margins with industry averages

Result

Completed series D round of equity funding with the support of financial figures in auditors’ report issued by a Big-4 accounting firm.