Project Work Streams for IFRS
DETAILED PLANNING, IMPLEMENTATION & REVIEW
Once the Preliminary Impact Assessment review is complete, and the findings are summarized, it is critical to maintain momentum and begin the design and planning components of the conversion. The design and planning, and implementation phases are the most in-depth and time consuming components of the transition. Work streams to consider during the transition include:
Accounting Policies & Procedures
- Changes to accounting policy and financial impact
- impact on procedural documentation
- Changes to key financial proccesses
- Documentation/support for policy changes/decisions under IFRS
Changes to the Chart of Accounts (COA)
- Nature and extent of the COA changes depends on finance/systems requirement
- Consider a holistic approach for implementing finance applications
- What are the requirements for and how to the implement an effective IFRS compliant COA
Information Technology
- Data gaps - existing vs. new data needs
- How to get reliable data for IFRS adjustments to produce opening Balance Sheet
- Data mapping, mining & other data mining techniques
- Changes in accounting treatments may require system changes
- Changes to systems calculations or other transactional routines
- Changes to master data & consider control implications
Business Impact Analysis
- Evaluation and potential modifications to compensation (bonus) policies
- Organizational KPI's may need modification
Communications & Training
- Finance staff will require IFRS training
- Broader awareness of the issues/differences under IFRS
- Executives need to be able to understand and explain changes in accounts/disclosures
Internal Control over Financial Reporting
- Maintain ongoing compliance during conversion and thereafter
- Conversion to IFRS and impact on data, processes, systems - has pervasive impact on financial reporting and disclosure risk
- Changes/maintenance of ICOFR documentation of process/control
