What is IFRS and What does it mean to you?
The International Financial Reporting Standards (IFRS) is a set of accounting standards developed by the International Accounting Standards Board (IASB) in an effort to create a single global standard for financial statements for public companies.
IFRS and the United States, and beyond
The US Securities and Exchange Commission is weighing a five-year work plan that would lead to conversion of all U.S. public companies to IFRS. This is in response to global demand from regulators, investors, businesses, and auditors for a single set of accounting standards. While support for maintaining US, GAAP remains strong in the some sectors, it is clear that multinational corporations or corporations that simply do business internationally will need to began preparing for IFRS one way or another.
IFRS introduces a series of specific challenges. The overall reporting of financial statements has been modified resulting several changes to how corporation track, prepare and present their financials. One of the most basic being the global standardization of terminology:
Changes in Terminology:
Oracle R12 and IFRS at a Glance
Oracle E-Business Suite Release 12, enables customers take full advantage of Oracle R12's multiple ledger functionality. With the introduction of Subledger Accounting (SLA), in R12, customers now have the ability to translate their ledgers into an IFRS compliant set of accounting entries.
Areas of consideration:
- Automate Subledger Accounting (SLA) to process individual transactions to comply with IFRS and US GAAP
- Standardize accounting and documentation policies using SLA
- Create customized reports from Oracle Subledger Accounting data
- Use Oracle BI Publisher, and Hyperion to create and maintain report formats with familiar desktop tool
Centroid's IFRS Team
The Centroid Applications and Industry practice has a focused team dedicated to working with our clients to help guide them on the path to achieving IFRS compliance. We work with our customers to identify the most optimal approach between GAAP to IFRS convergence, or complete IFRS Adoption. Using an established portfolio of common accounting and reporting changes for IFRS, we're able to establish a framework for transiting in and expedient manner.