Detailed Game Plan Will Assist Companies In Complicated IFRS Adoption, FERF Study

While many financial executives have begun the initial stages of convergence with International Financial Reporting Standards (IFRS), early adoption in 2009 for qualifying companies will be difficult, if not impossible, due to the significant time requirements, according to a new

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While many financial executives have begun the initial stages of convergence with International Financial Reporting Standards (IFRS), early adoption in 2009 for qualifying companies will be difficult, if not impossible, due to the significant time requirements, according to a new report from Financial Executives Research Foundation (FERF) and Resources Global Professionals.

The report also finds that a crucial milestone for companies will be the SEC’s anticipated 2011 decision on whether or not mandatory adoption of IFRS is in the public interest.

The new FERF Study, entitled, “International Financial Reporting Standards: A Project Plan for U.S. Companies,” is the first in an information series FERF is publishing to provide practical professional education on IFRS.

The report highlights current IFRS-related efforts of U.S. public companies in compliance with the multi-year Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers (Roadmap) released by the SEC in November 2008.

The Report outlines four initial steps in preparation for IFRS:-Devise an overall strategy,

-Determine the impact on the company,

-Identify a project team and governance structure,

-Develop a detailed IFRS game plan.

“The timing of the SEC’s Roadmap will have a profound impact on the finance profession, and professionals will be closely watching to see how the economic crisis that had escalated subsequent to the IFRS session will affect the ultimate timeline,” says Marie Hollein, president and CEO, Financial Executives International and FERF.

“Our report not only provides a summary of what U.S. companies are doing to get ready for IFRS in advance of a final Roadmap, but the key concerns our community is facing — these need to be kept top of mind as the new SEC leadership makes decisions related to IFRS.”

“Regardless of timing, IFRS will be a huge undertaking for companies, requiring years of planning and preparation,” says Colleen Cunningham, global managing director, Finance and Accounting for Resources Global Professionals.

“While companies will need to be flexible and be ready to adjust quickly to any proposed changes, there are several standard guidelines that companies can follow in their preparation.”

L.D.

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