IFRS is a challenge that requires close attention to detail across an endless number of issues. Ensure your attention is in the right place with our handy checklist.
1 Ensure you understand the strategic options impacting on your key performance measures, such as the question of whether to adopt IAS39 and 32 in the comparative period and which IFRS1 exemptions should be taken.
2 Source data will be within the operational business units. You must have confidence that the detailed requirements of the new standards have been considered by all of your business units.
3 IFRS could change the market perception of your company and your industry so make sure you understand how that might come about and check that your communications plan will deal with this.
4 Assess the potential impact of IFRS at an entity level so that you can take decisions about when to adopt the new standards knowing the implications for tax and distributable reserves, as well as potential costs and savings.
5 Assess your skills base to ensure you have people who have a full understanding of IFRS in the central reporting team, all your operating units and in an independent review capacity.
6 The financial controls over the production of IFRS data and financial reporting under the new standards need to be robust. This means being confident that they are at least as supportable as those used under UK GAAP, and that they reflect the developing corporate governance requirements.
7 Where you have relied on off-line process and fixes during the transition, there should be a robust plan in place to embed them in your financial systems, as well as ensuring that your management information can be produced on an IFRS basis in the future.
8 Managing and accounting for all financial instruments, including the identification and valuation of embedded derivatives, will be an ongoing requirement so responsibilities in this area must be well defined.
9 IFRS may have implications for your financial covenants and loan arrangements. The banks will expect early warning and discussion of any changes.
10 Changes to your performance measures and the method of accounting for pensions and share options mean that you may need to consider whether your remuneration policies are appropriate.
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day