Business Technology Innovation

One of the key aspects to IFRS adaption is determining the key changes to Information systems and identifying the appropriate level for consolidation system changes.

Moving on in the IFRS reporting process, let’s take a brief look at the process flow. The logical starting point is the Statement as per Local GAAP and ending with Statement as per IFRS. The transformation in between would consist of Measurement, Recognition and Reclassification.

Considering the impact areas, IFRS convergence has considerable challenges. Especially for companies with multiple operations, multiple sites and multiple system. It is the internal complexities that companies have built over a period of time, that makes IFRS adoption difficult.

IFRS Implementation will have wide ranging impact for an organization. Impact will be on business, technology and on the stake holders. Considerable preparation will be required internally in terms of gap analysis, guidelines, controls, training etc. Depending on the size, maturity and complexity of IT ecology, changes to transaction and analytical system could be significant. Finally, IFRS will have an impact (negatively or positively) on the way financial performance is reported.

IFRS is perhaps the most important change to financial reporting effected on a global scale. IFRS or International Financial Reporting Standards are standards, interpretations and frameworks adopted by the International Accounting Standards Board (IASB).

Packaged Applications are typically used by finance teams to structure and automate the monthly or quarterly aggregation of historical results and include best-practice methodology. But with growing complexity, financial consolidation is becoming more of financial management these days. Primary requirements are Accelerated Reporting Cycles and Reduced Cost of Compliance.

The International Financial Reporting Standards (IFRS)  issued by International Accounting Standards Board (IASB) has been adopted by India. The Institute of Chartered Accountants of India (ICAI) has issued a list of companies that should converge their accounting practices with International Financial Reporting Standards (IFRS) by April 2011.
The first list  of companies include

SENSEX Companies
Nifty Companies
Companies that [...]

Comparison of the various tools used for financial consolidation, from Excel Spreadsheet to Packaged Solutions

Financial consolidation is a process involving both horizontal and vertical planes. These vertical and horizontal steps are involved irrespective of the process followed by an enterprise. Unless addressed in a structured manner, financial consolidation process will result in one or more pain points

Financial Consolidation is perhaps one the complex and demanding financial exercise accountants engage on a monthly / quarterly basis. But why is the process demanding and complex and especially when enterprises run mature ERP and other transaction systems? And why is it a necessity?