Remind me, what is IFRS?
Wait; don’t stop reading because you are thinking that only the Accounting department needs to know about IFRS. IFRS will impact almost all areas of an organization including IT, Operations, Manufacturing and certainly the Finance Department.
As a reminder, IFRS stands for the International Financial Reporting Standards. They are the judgment-based financial reporting system that the US is likely moving towards. These standards are different from the rules-based system of U.S. GAAP that is currently followed in the United States.
Let’s start at the beginning and discuss the difference between a rule-based system and a principles-based system.
Those of us that just experienced a harsh winter can remember lots of times recently when driving 55 miles per hour was out of the question. A principles-based system allows room for the individual to make decisions based on what they know to be true and what they think will be best. In a rules-based system you follow the rules, always, without question.
The current roadmap proposes that US companies will need to be IFRS compliant by 2015. Europe is currently utilizing IFRS and Canada companies have a 2011 due date. What is the feedback time and time again from companies that have been there? Start early! In the coming months we will post IFRS information and updates on this blog and we will tell you about Resources Global Professionals’ relationship with IASeminars and the many IFRS specific training opportunities available to you. Read the press release here.
- – So far, more than 12,000 companies in almost 100 countries have adopted IFRS
- – This is 40%+ of the Fortune Global 500 companies
- – The SEC estimates that US companies will spend 0.13% of their revenue on transitioning from U.S. GAAP to IFRS
- – IFRS conversions are underway in Canada, India, Japan, Mexico and more
For an expert opinion on what is next in IFRS, please read the Resources Global Finance and Account blog with recent posts on updates in IFRS – http://www.resourcesglobal.com/blogs/fna/
We will also talk about the role that policyIQ may take in your IFRS project. Feel free to contact us with any questions – support@policyIQ.com.