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Ifrs Convergence Services
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IFRS adoption is not an accounting exercise — it’s a fundamental shift in how the company operate that affects virtually every function within an organization. In fact, through the IFRS conversion the company has to review, streamline and improve all aspects of accounting, reporting and related compliance and information technology processes. An effective IFRS conversion process begins with an accounting diagnostic: a high-level analysis of a company’s individual systems that assesses the effect conversion may have on all aspects of the business. Among the areas that will require review are:Management Reporting System: Management reporting is a complex action that involves other business processes and makes use of a variety of information systems — from general documentation and financial control to internal communications. Changes in the processing and summarization of data in accordance with IFRS must be fully embedded in back offices and general ledger systems. This can require fundamental system changes that can reverberate across the company.Tax planning: Companies will need to review their tax planning strategies to determine whether they are in alignment with any organizational changes created by the IFRS conversion.Employee and executive compensation: Because IFRS may result in significant changes to a company’s financial results, the amount of compensation calculated and paid under performance-based executive and employee bonus plans may be materially different.Key performance indicators (KPIs) and investor relations: Companies will need to understand and quantify the prospective impact on their KPIs that may result from adopting IFRS and determine the appropriate message for investors.Organization and people: The conversion process requires analysis, time and resources. The company must provide relevant education and training to members of the accounting and finance organization to meet their new technical knowledge needs, as well as to facilitate the roll-out of accounting policy changes and the associated revised business processes and procedures.ERP Configuration: IFRS implementation will either require reconfiguration of existing ERP system to comply with the changes required.As apparent, the IFRS implementation will require different arenas of professionals to work together. RJCC works as a single window having versatility in its talent resources & experience, capable of providing inception to end solutions & post implementation support customized to client’s needs. We strive to provide practical solutions to all the requirements of the client.
