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Impact of Ifr Adoption

In: Business and Management

Submitted By khj845
Words 510
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a. Financial process management and control is improved with automation.
IFRS transition offers a classic opportunity to exploit the benefits of ERP. The inherent value of consolidated transaction management and reporting systems becomes clear in a financial data conversion process. The ledger and subledger systems (where core data resides and feeds the GAAP-based GL) are the sources of the data conversion process. In the same way that ERP efficiently consolidates large volumes of financial and operational data for management visibility and reporting, companies can leverage the ERP system to consolidate multi-GAAP reporting for IFRS conversion.

b. Financial information management is improved with a streamlined global chart of accounts.
Comprehensive financial data management that includes financial controls, transparent reporting, and audit and security management is embedded in ERP systems like Epicor. A globally standardized accounting regimen will reduce the time and resources required to provide manual conversions still seen today. Combined with the consolidated financial resources of ERP, a globally streamlined chart of accounts under IFRS

c. Teams work together to efficiently achieve a common objective.
Internal best practices developed over many years of project and program management are immediately valuable to the IFRS transition project. Costs escalate, time and again, when companies extensively outsource these competencies or abdicate internal program management functions to external consultants. Project cost-reduction in the IFRS transition process depends upon solid planning and efficient project management.

d. Previous investments in internal skills are leveraged.
The combination of IT, finance, and internal audit skills and experience determine the ease and efficiency of the IFRS transition project. The knowledge gained by project team…...

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