More than 100 countries have adopted International Financial Reporting Standards (IFRS) either as originally issued by the International Accounting Standards Board (IASB) or as endorsed by a particular jurisdiction. Although the Securities and Exchange Commission (SEC) has not released a revised timeline for U.S. transition to IFRS, convergence is likely imminent. Joint projects are currently underway by the Financial Accounting Standards Board (FASB) and the IASB to release new accounting standards that are aligned with IFRS. Are you ready?
Let the assurance professionals at Weaver help you assess the impact of IFRS on key reporting areas with a pre-adoption assessment. We can delineate the statements and captions affected in the conversion from U.S. generally accepted accounting principles, or GAAP, to IFRS. We also examine operational impacts on compensation plans, loan covenants and dividend policies, as well as bring stakeholders up to speed on any changes.
Weaver’s assurance professionals are experienced with audits of IFRS-based financial statements.
IFRS conversion services include:
- Assisting management with the selection of IFRS accounting policy alternatives such as voluntary exemptions provided by IFRS 1, First-time Adoption of International Financial Reporting Standards, and helping management assess the implications
- Determining adjustments necessary to bring the financial reporting in line with the appropriate basis of accounting
- Preparing financial statements and disclosures to meet requirements
- Assisting with accounting systems and internal controls design and implementation
- Assisting with stakeholder communications
- Providing targeted training for accounting personnel
While converging IFRS and GAAP is the objective, significant differences still remain between the two standards:
- IFRS prohibits Last In First Out (LIFO) as an inventory costing method
- IFRS permits the revaluation of assets in certain circumstances
- IFRS generally requires more footnote disclosures to support the policy elections made in the financial statements
- IFRS uses a single-step method for impairment write-downs, rather than the two-step method used by GAAP