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Get Up to Speed with IFRS |
This article is the sixth in a series of articles that takes our readers on a journey through International Financial Reporting Standards (IFRS) with a special focus on the standards’ quintessential feature: they are principles based. In this article, we provide advice to help professionals manage the changeover from U.S. generally accepted accounting principles (GAAP) to IFRS.
The SEC recently voted to publish a proposed multi-year plan setting out several milestones that could lead to the use of IFRS by U.S. issuers beginning in 2014. The SEC will make a decision in 2011 on whether the adoption of IFRS is in the public interest. However, the actual publishing of a proposed roadmap signals the coming of IFRS. Fortunately, there is still time to prepare for the implementation of IFRS. It is, however, important that professionals who will be involved with IFRS start working on their personal professional development plan for learning about IFRS. Following are some suggestions to help design and manage the learning process:
- Start a personal toolkit. This toolkit should consist of information that is available on the International Accounting Standards Board Web site, such as A Guide through International Financial Reporting Standards July 2008. There are also newsletters from various sources that provide useful up-to-date information. Further, public-company financial statements that have been prepared in accordance with IFRS are available on the Internet.
- Commit to self-study of IFRS and a full understanding of the philosophy behind it. On the Internet, there is a significant quantity of material that can be accessed free of charge or via subscription.
- Attend IFRS training courses. There are a variety of courses that are currently available. Following are some points to consider as you evaluate courses:
- Select the right level to address your needs. Overviews, IFRS vs. U.S. GAAP comparisons, or other courses that cover many topics in a few hours might be appropriate for beginners but not for those seeking in-depth training.
- Insist that instructors have fieldwork experience in applying IFRS.
- Ask for evaluations from previous training offerings.
- Build your own consultation network. Professionals should start thinking now about how they will be able to resolve IFRS implementation issues, possibly in consultation with others.
In conclusion, approaching a new set of standards requires a significant investment of time and effort. Particularly, one way or another, professionals will have to go back to “school”. This might sound obvious, but not underestimating this inevitable and preliminary step represents a good starting point.
Source: McGladrey & Pullen, LLP |