IFRS: Better To Be a Leader or Fast Follower?
International Financial Reporting Standards (IFRS) will become the approved method of financial reporting in the United States. The question is, when? The bigger question at the moment for most companies is when to get started with planning for IFRS.
This is the issue of a new debate (www.deloitte.com/us/IFRSdebates) launched today by Deloitte via its “Deloitte Debates” series. Titled, “Front or Back Burner,” the debate is designed to help corporate executives, CFOs in particular, understand the pros and cons of getting started now with planning and preparations for IFRS versus waiting until later.
Presented in easy-to-read point and counterpoint format, Deloitte discusses several issues that merit consideration in deciding when to start planning for IFRS, including long-term cost management and financial reporting and accounting efficiencies, availability of qualified resources and the impact of the economic downturn and limited resources.
“With modest investments of time and energy today, companies can avoid the risk of over-investing later in a ‘boil the ocean’ frenzy,” said Sam Silvers, principal, Deloitte Consulting LLP, and national service line leader for Deloitte’s Financial Management Consulting practice.
Despite uncertainty around the SEC’s timeline and the temptation to sit back and delay while legislation plays out, Silvers suggests companies “use the months ahead to identify issues surrounding IFRS, with a sharp focus on understanding decisions with long lead times. This decision may involve large systems implementations, as well as any ongoing finance transformation activities.”
IFRS, however, goes way beyond technical accounting. It’s also about people, processes and technology. The Deloitte Debate discusses these areas as well, with perspectives for chief human resources officers and chief information officers.
Source: Deloitte LLP