IFRS: Learn from mistakes made by others

Feb 07, 2012

Aug 30, 2011

“Procrastination was the biggest problem Europe faced in converting to IFRS,” warns Leah Donti, CPA, CMA, MBA, founder of Advantage Montreal Seminars, at the Columbus Accounting Show.

U.S. companies aren’t preparing for a potential transition to IFRS in 2015 right now. Instead, they are waiting until “the SEC makes a decision to require IFRS and announces a date certain for adoption of IFRS.” She added, “What you will find is the lack of planning leads to costly mistakes.”

Donti teaches seminars across North America, including Canada which is preparing to convert to IFRS in January. She shares lessons that Europe learned and what Canada is experiencing now in its conversion.

Donti suggests beginning the planning process two to three years in advance of the requirement. “The more you delay, the more work you have and the more costs you will incur,” Donti said.

She recommends having a good, tactical conversion plan:

• Identify the full scope and depth of IFRS changes throughout the organization
• Provide a plan and a structural framework for truly embedding IFRS within the organization
• Integrate the necessary people, processes, systems, data and control changes with adequate considerations for quality
• Establish a strategy for communicating IFRS impacts to key stakeholders, both internal and external
• Address the education and training needs throughout the organization