What according to you are the biggest challenges of moving to IFRS?
Manager 1: Well, there are going to be a lot of changes. IFRS is known to be more principle based than the GAAP. The principles-based approach is sure to pose many more problems than the existing GAAP. This change would require a complete transformation for our organization at the strategic level. It is extremely important for the top management to put down a proper action plan for the implementation of IFRS. A proper strategy will need to be developed to ensure smooth conversion from GAAP to IFRS.
Manager 2: One of the biggest challenges is of course going to be to understand the accounting and regulatory landscapes that will prevail post the implementation of IFRS. Also, the availability of trained financial advisors is going to be a challenge. It is going to be important for organizations to have external consultants advising them on the change over to IFRS. Only the external consultants would be able to understand the requirements and thus apply them in a consistent manner. With all the organizations needing such external consultants, there is soon going to be dearth of IFRS experts. The change is going to have an impact on all aspects of the organization.
IFRS is going to be a big challenge for all firms, big or small. Most companies feel IFRS is a mere accounting change. However, IFRS is not only about a change in the accounting policy, it is change that will require an entire transformation for organizations. The impact of IFRs will be seen on all stakeholders - customers, employees, lenders, investors, regulators etc. (Paul Rodgers, 2007) Expertsmind.com offers unique solutions in accounting.