IFRS Impact | IFRS Beyond Financial Accounting & Reporting

Beyond Financial Accounting & Reporting

Control Environment	Finance & Business Processes
Policies and procedures Efficiency of finance department Internal control documentation Audit committee involvement	Accounting policy selection Regulatory requirements Benchmarking to relative peer groups Strategic plan impact (tax impact) Business performance metrics Volatility of earnings and equity Compliance issues with multi GAAP Compensation plan changes
Training & Resource Requirements	Business Information Systems
Training and education Employee benefits Investor relations Complex project management Resources internal and external Budgets Executive understanding and oversight	Chart of account changes Financial close implications Key performance indicators Management reporting Data collection Financial statements presentation

IFRS will pose some unique challenges, as illustrated below, to key internal stakeholders, notably - Strategic Management, Finance & Accounting, Treasury, Human Resources and Information Technology.

Strategic Management - acquisition analyses requires IFRS-based data to drive asset based or earnings based due diligence modeling assumptions;

Finance & Accounting - accounting structures and account classifications will change, as will therefore, budgeting, forecasting, and key performance indicators; process and control documentation will require updates for SOx and ICOFR Certification;

Treasury - financing decisions can be impacted directly by IFRS choices on debt covenants and hedge accounting;

Human Resources - requiring resources over an 18-24 month period, in the face of competing priorities, will undeniably challenge staffing models; training plans will be required to identify all user groups whose needs vary wildly - from Finance staff impacted at the transaction and process level to senior management who need to understand and explore the "new" numbers; choice of IFRS will produce earnings volatility which impact performance bonus plans, while employee incentive plans could be impacted by changes to share-based payments.