Adoption of IFRS must be well planned.
International Financial Reporting Standards (IFRS) are the accounting and financial reporting standards developed by the International Accounting Standards Board (IASB). The standards are currently adopted or permitted by over 100 countries and major economies, with other countries having established a time line for convergence or adoption. IFRS standards are primarily for companies that are publicly listed, though guidance is also provided for companies without public accountability. The international accounting standards established by IASB are available on their website.
Instructions
1. Obtain an overview of IFRS by attending seminars that educate users on the organization's history and the fundamentals of IFRS for financial reporting and disclosure requirements. Learn key similarities and differences between IFRS and the generally accepted accounting principles (GAAP) of your country. Understand the requirements for first-time adoption of IFRS standards.
2. Attend courses to understand current IFRS pronouncements, amendments and interpretations. Examine the case studies, examples and exercises presented in the course and determine how they apply to your entity.
3. Create a checklist based on current IFRS pronouncements and interpretations with the assistance of a consultant. Determine a transition date on which your financial statements will be fully compliant with IFRS standards.
4. Apply IFRS principles in business situations and when making business decisions. Train your entire staff on IFRS compliance. Remain current with the standards and interpretations by periodically reviewing the IFRS website. Learn how your company will be affected by future developments with IFRS.
