IFRS: Managing the transition

Since 2005 all EU listed companies have been reporting under IFRS (International Financial Reporting Standards) in their group accounts. The UK’s Accounting Standards Board is proposing that in the next few years some UK companies and other reporting entities will be required to, or have the option to, move to a more IFRS-based financial reporting framework. The US is also considering a transition to IFRS, as are many other countries such as India and Japan.

The switch from local accounting standards to IFRS must be well thought-out, and its implications understood. It is easy to think that only those involved with accounting and finance need to get involved or will be affected by it. However, the lessons learned by the EU’s listed companies in the last phase of conversion to IFRS indicate that a much broader perspective is needed, and that the conversion must be treated as a project to be carefully planned and executed.

Managing your Transition to IFRS enables you to:

• Understand why the change to IFRS is happening
• Know the reporting requirements for small and medium sized companies
• Consider the costs of the transition
• Plan a transition from financial reporting to IFRS
• Understand the non-financial implications of switching to IFRS

The regulatory regime
• What are International Financial Reporting Standards and how have they developed?
• Why are countries and companies switching to IFRS?
• What are the reporting requirements for small and medium sized companies?

The IFRS transition project
• What are the benefits of establishing an IFRS transition project?
• What should be the main stages in planning the project?
• What is the cost of IFRS transition?
• What role can external advisors play in the project?

Introducing IFRS reporting
• How can the main accounting impacts be identified?
• Will there be any affect on presentation and disclosure requirements?
• What systems and controls issues need to be considered?
• How can I make sure that IFRS is embedded in the organisation?

The non-financial implications
• What are the implications for employees, suppliers, customers etc?
• Will the transition have any effects on company strategy, policies and regulation?
• What effects will the transition have on the users of my financial statements?
• How can transition issues be effectively communicated to those outside the company?

Accounting and finance professionals at all levels in practice and industry, as well as business owners considering a switch to IFRS, non-financial managers and board members in any size company, audit committee members.

Lisa Weaver is a professionally qualified lecturer with 15 years experience of exam-based, and CPD lecturing for accounting and finance professionals. She qualified ACA with Deloittes, and spent 4 years in audit practice. She currently lectures in financial reporting, audit and governance subjects, and develops and delivers CPD courses for qualified accountants working in industry and in practice.