Archive for the ‘IFRS’ Category
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).