|IFRS: A Preparer's Point of View
Be ready to lead your company's transition to IFRS.
If you think IFRS is difficult for CPAs to comprehend, talk to non-CPAs. Historically, accounting professionals have insulated their colleagues from understanding the effort involved in implementing newly issued accounting standards. As a result, you cannot expect them to understand the challenge associated with adopting an entirely new framework.
To successfully implement IFRS, CPAs will need the assistance and insight of their colleagues. IFRS provides preparers many options to elect policies that best reflect the underlying business. Input from key stakeholders in the company is crucial for anticipating potential changes in company practices and ensuring the proper elections are made.
Presentations and proposals by audit firms and consultants feature robust IFRS implementation methodologies that typically start with an assessment phase called Phase 1. What many audit firms and consultants do not realize is how many companies are not ready for Phase 1.
This article has been excerpted from the Journal of Accountancy. Read the full article here.