Kookmin Bank, New York Branch
Hana Bank USA, N.A.
Shinhan Bank, New York Branch
Woori Bank, Los Angeles Branch
Woori Bank, New York Agency
A leading litigation finance company headquartered both in London and New York (listed both on London Stock Exchange and New York Stock Exchange) lost its US Foreign Private Issuer (FPI) status, which led to an ongoing requirement to prepare US GAAP financial statements. We provided a full IFRS-to-US GAAP conversion advisory service to the company including (but are not limited to):
• Consolidation and VIE (ASC 810),
• Equity method investments and joint ventures (ASC 323),
• Investments in debt and equity securities (ASC 320 and ASC 321),
• Investments in capital provision assets (ASC 815),
• Derivatives and hedging activities (ASC 815),
• Debt financing and embedded derivatives (ASC 470 and ASC 815),
• Transfers of financial assets (ASC 860),
• Share-based payments (ASC 718),
• Leases (ASC 842)
• Developed a CECL implementation timeline;
• Evaluated data availability, segmentation, and pooling of loans;
• Developed the appropriate CECL models to calculate the lifetime expected credit losses:
- Cohort,
- Vintage,
- Weighted-Average Remaining Maturity (WARM),
- Probability of Default (PD) / Loss Given Default (LGD),
- Discounted Cash Flow (DCF)
• Designed and implemented new process and controls;
• Drafted accounting policies and procedures; and
• Drafted financial statement disclosures.
• Developed the accounting and financial reporting process and controls.
• Assisted in external and internal audit activities as directed by the Audit Committee.
• Monitored cost control activities and implemented cost control strategies.
• Managed accounting system conversion projects.
• Planned and implemented business combination accounting and financial reporting for a bank acquisition under ASC 805.
Technical Accounting
• U.S. GAAP accounting support and oversight:
- Researched accounting and regulatory rule changes (e.g., FASB and SEC) impacting the various business units, including new lease (ASC 842), revenue recognition (ASC 606 and ASC 610-20), and new hedging (ASU 2017-12, ASC 815) standards.
- Advised on accounting for complex transactions for areas including leasing activities (ASC 840), lending activities (ASC 310), equity method/Hypothetical Liquidation at Book Value (HLBV) accounting (ASC 323), and consolidations (ASC 810).
Regulatory/SEC Reporting
• Implementation of the Federal Reserve Board’s enhanced prudential standards (EPS):
- Quantitative and qualitative disclosures about market risk in Forms 10-K and 10-Q of its IHC in accordance with SEC S-K Item 305.
Transaction Advisory
• Technical consultations over structured and/or tax incentivized lease financing and lending arrangements, renewable energy equity investments, and other structured products and transactions and reviewed that transactions were booked appropriately.
• Enhanced and maintained accounting policies and procedures to comply with generally accepted accounting principles and internal policies and procedures.
• Developed system of internal controls and monitored for compliance.
• Managed financial reporting for management and shareholders and ensured all reporting was prepared in a complete and accurate manner.
• Presented financial information to Board of Directors and senior management.
• Supervised department personnel for timely performance of their functions.
• Provided budgetary analysis and other management reports.
• Managed bank and deposit relationships and initiated appropriate strategies to enhance cash position.
• Reviewed key contracts to ensure alignment with financial reporting requirements.