TORONTO, Sept. 29 /CNW/ - The globalization of business has led to the
need for a set of common, high-quality accounting standards. In comes
IFRS-International Financial Reporting Standards which is a fundamental change
initiative affecting not only the numbers, but systems, processes and data
supporting financial reporting.
According to a new whitepaper released today from PricewaterhouseCoopers
(PwC), Are you ready for IFRS, shows that IFRS presents an opportunity for
companies to look ahead to the requirements of the business, and design a
conversion plan that takes advantage of project synergies, embeds change
throughout the organization and creates a more efficient business structure
Canadian companies that intend to just meet the deadlines should be aware
they will need to use IFRS standards to prepare interim and annual financial
statements for financial years beginning on or after January 1, 2011. These
statements must include comparative information prepared in accordance with
IFRS for at least one year (i.e. for 2010). While this sounds like plenty of
lead-time, publicly traded companies will be required to disclose their
transition plans in 2008 and the anticipated financial statement effects of
their changeover in 2009.
"Although it may be easy to dismiss this looming transition as an issue
solely for the accountants, the implications and ramifications of IFRS will
hit home for everyone within a company, including the IT function," says
Margaret Neary, a vice president with PwC Canada's IT Advisory practice. "To
put this in context, since IT systems support and enable the financial
process, this could represent changes to not only the financial systems
themselves, but also supporting interfaces and data."
The scope of the change will vary from organization to organization, and
will depend on a number of factors including, but not limited to:
- Industry sector;
- Application architecture;
- Data/information architecture;
- Enterprise Resource Planning (ERP) system: design, version, modules
- Enterprise Performance Management (EPM) systems: design, version,
modules deployed, for example.
According to the PwC whitepaper, there are five key questions
organizations and their CIOs need to ask:
1. Will we need to consider whether to add new data sources and/or
change existing financial data, metadata and interfaces to ensure
the organization has the underlying financial data required to
2. Where will we make changes within the application architecture to
support IFRS reporting?
3. What impact will IFRS changes have on our IT projects already planned
or "in flight"?
4. What impact will IFRS have on our ongoing operational processes such
as current financial certification requirements like SOX 404 or
Multilateral Instrument (MI) 52-109?
5. What are the organization's objectives for the project and appetite
Neary notes that, "Understanding the approach your organization is
planning to take will help you assess the scope of the project and your level
of effort to successfully complete the conversion."
For more information please visit www.pwcifrs.ca
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 146,000 people in 150 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
(www.pwc.com/ca) and its related entities have more than 5,200 partners and
staff in offices across the country.
"PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.
For further information:
For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730, firstname.lastname@example.org; Nina Godard, PricewaterhouseCoopers
LLP, (416) 941-8383 ext 13520, email@example.com