|
IFRS Consulting
|
International Financial Reporting Standards (IFRS) |
Transition to the global GAAP |
International Financial Reporting Standards (IFRS) Transition to the global GAAP Transition to International Financial Reporting Standards (IFRS) is gaining momentum throughout the world as a single, consistent accounting framework and is positioned to become the commonly used reporting format in the near future. More than 100 countries have moved to or are moving to base their local standards on IFRS. In 2005, UK, the rest of Europe and Australia moved to IFRS. In 2007, China moved to IFRS. Brazil is expected to move in 2010, and Canada in 2011. In the US, the SEC has laid down the roadmap for conversion to IFRS starting 2014, 2015 or 2016, depending on the size of the issuer. The ICAI has decided to implement the move to IFRS wef 01/04/2012, subject to regulatory approvals. The Ministry of Corporate Affairs has also announced its commitment andto convergence to IFRS by 2012, with one year’s comparative data for 2011.
There are significant differences between IFRS and I-GAAP and much work both on the regulatory side and the professional side will have to be done to bring about the convergence in a smooth transition. IFRS is also a moving target, so grey areas and pain areas will trouble all stakeholders during this convergence process. Proper planning and implementation as well as educating both internal & external stakeholders will gain much importance during this time & process.
Converting to IFRS is not just a technical accounting exercise – it is a significant project that will require support from multiple business functions including IT, tax, treasury and human resources. Now that the Ministry for Corporate Affairs has published the roadmap and timeline for convergence, IFRS is high on the agenda for all CFO's. The starting point of the journey is to conduct an IFRS diagnostic to assess the impact that conversion will have on your business. For more on how Penta Consulting can help you prepare to report under IFRS, do get in touch with us at ifrs@penta.co.in
|
|
|
|
|