The Banking and Strategy Initiative

Chillin' out till it needs to be funded

IFRS vs GAAP

Any thoughts on the conversion from GAAP reporting to IFRS? This could be the single most important initiative facing the financial world today. Appears we have until 2014 to fully convert (which really means 2011).

Asked by Jeanette Eberhardt

Amazon.com Widgets
 If you want to ask if there is an opportunity, the answer is a definite yes. From what I know of others’ experience from this forum itself, IFRS updates entail 3-4 months of the corporate finance teams effort and thus a lot of consultants will be spending client resources to keep things chugging along. If the concern is the implementation timelines, then again the obvious is correct as IFRS implies getting the entire compliance into a compact window and thus the sooner it is implemented the better it is for everyone. The initiative however, is not so fine with International co-operation still in process to actually achieve a standard way of looking at this “consistent” standard and that means there will be rework as we go along especially probably in the sectors where it was need the most – retail sales, higher education and probably travel and automotive. Banking sector would probably take a lead again in the implementation as there the MTM clauses are simpler and already denote a higher correlation between european and american standards. We have most Top 100 companies already taking steps in this direction because they have significant operations on both continents so let me know what kind of ‘ideas’ you are looking for in this forum. best regards amit”

UPDATE 2009: IF you have warranties, returns, leases, banking investments, subsidiary operations, minority interest, mark to market portfolios, mark to market inventoriees, you are headed for IFRS, Contact the Corp Executive Board today! (Anand below, has been very diligent in explaining the details)

Also for Financial Securities and for Leases and your product and Raw material inventories which are not frequently traded, Mark to Market may not be the dread and the fear for your profits

Advertisements

2 comments on “IFRS vs GAAP

  1. Anand Natarajan
    July 30, 2009

    As we exchange information on IFRS and work together toward the compliance deadline, I’d like to invite you to be a guest user on the Corporate Executive Board’s IFRS Transition Portal – http://www.ifrsportal.in. We, at the Corporate Executive Board, leveraged our global network of over 2200+ CFOs, Controllers and Heads of Audit to build out a one-stop resource to assist Indian companies in their IFRS transition through practical guidance, best practices research, execution tools and benchmarks – so that you learn directly from your peers that have made the transition.

    You’ll find a Discussion Board on the portal, where you will have direct access to 1500+ IFRS practitioners to whom you can pose implementation-related questions, get practical answers and solutions, and learn about the tools and tactics that worked for them. Apart from the discussion board, you’ll also be able to plug into peer-led webinars, IFRS disclosure writers, accounting policy generators, e-learning modules, best practices research and implementation tools.

    Apart from registering as a guest for free access to browse the portal, you can also register through the portal for a complementary webinar on Successfully Planning the IFRS Transition, on 7th August, 2009.

    Like

  2. zyakaira
    July 30, 2009

    Thanks Anand, this will be a big plus for the readers

    Like

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Archives

%d bloggers like this: