Move Over GAAP, Preparation Begins Now for Move to New International Financial Reporting Standards
October 26 2009 - 3:00PM
PR Newswire (US)
New Protiviti resource guide and webinars identify steps companies
should take now to prepare for conversion to new financial
reporting standards MENLO PARK, Calif., Oct. 26 /PRNewswire/ -- The
expansion of the global economy continues to affect the way
companies do business, and the U.S. Securities and Exchange
Commission's current timeline for the adoption of international
standards will have a significant impact on how companies report
financial results. To help business leaders prepare now for the
expected challenges, Protiviti Inc., a global business consulting
and internal audit firm, has released the Guide to International
Financial Reporting Standards: Frequently Asked Questions. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090115/AQTH541LOGO) Recent
communication from the SEC stating that convergence to
International Financial Reporting Standards (IFRS) is going to be a
priority of its staff over the coming months has reignited the
discussion of the potential impacts of adopting IFRS by many
companies. Additionally, the G-20 summit meeting in September sent
a clear message of the need to achieve a single set of high-quality
global financial reporting standards. More than 100 countries
adhere to IFRS currently, and they will be joined shortly by
additional countries converting to IFRS, such as Canada, India,
Japan and Mexico. The global standards reflect a predominantly
principles-based approach to financial reporting, rather than the
predominantly rules-based approach found in generally accepted
accounting principles (GAAP), including U.S. GAAP. "Businesses that
have been through other shifts in regulatory standards, such as the
Sarbanes-Oxley Act, recognize that it's important to prepare
early," said Chris Wright, managing director with Protiviti and
co-leader of its IFRS practice. "Now is the time to begin
formulating the steps needed to ensure that either a conversion to
IFRS or convergence to IFRS one standard at a time is as seamless,
efficient and cost- effective as possible." Regulatory agencies and
investors increasingly have sought a consistent worldwide standard
for financial reporting due to the continued globalization of
capital markets, cross-border investing and capital flows, as well
as the need to assess the financial health and condition of
organizations using a common approach. As currently proposed, the
SEC's roadmap sets forth several milestones that, if achieved,
could lead to required use of IFRS by U.S. public companies as
early as 2014. A recent International Accounting Standards Board
(IASB) standard allows the use of a less complex alternative to the
full set of IFRS by non-public companies in the United States. "The
transition to International Financial Reporting Standards will have
far-reaching ramifications," said Steve Hobbs, a Protiviti managing
director and co-leader of the firm's IFRS practice. "We have
written the Protiviti IFRS resource guide to assist organizations
with addressing not just changes to external financial reporting,
but changes that will affect corporate strategies and policies,
business processes, people, technology, resources and internal
reporting." Protiviti's Guide to International Financial Reporting
Standards provides answers to more than 100 frequently asked
questions and includes an overview of the standards and the many
conversion-related challenges that companies must address.
Questions addressed in the guide include: -- Where can I find the
pronouncements regulating IFRS? -- What lessons can be learned from
the conversion experiences of other countries? -- Is there a way to
estimate the time, effort and cost required for my company to
convert to IFRS? -- What is the role of the audit committee in
implementing IFRS? -- What information systems are likely to
require changes as the result of a conversion to IFRS? -- How will
IFRS affect analysts' valuations of our company? To access a
complimentary copy of the Guide to International Financial
Reporting Standards: Frequently Asked Questions, please visit
http://www.protiviti.com/go/IFRS_FAQs IFRS Webinars Offered
Protiviti will also host two different complimentary webinars in
October as a supplement to the guide: October 27, 2009, 11 a.m. PDT
- "Japan's IFRS Roadmap and Conversion Approach for Foreign
Subsidiaries of Japanese Corporations" Overview: During this
webinar, Protiviti experts will provide an overview of Japan's IFRS
Roadmap and discuss the potential implications of IFRS conversion
on infrastructure. They will also address how foreign subsidiaries
are approaching the convergence, including identifying resource
needs; assessing system capabilities; assessing the impact on an
organization's internal control structure; advising on how to
reshape key reporting areas and performance measures; managing the
change initiative for people, process and technology; and assisting
with planning and cost considerations. October 29, 2009, 11 a.m.
PDT - "IFRS: Convergence, Beyond the Numbers" Overview: During this
webinar, Protiviti experts will provide an overview of global IFRS
trends and latest developments and discuss the potential
implications of IFRS conversion on infrastructure and controls.
They will also address how companies are approaching the
convergence to IFRS, including identifying resource needs;
assessing system capabilities, assessing the impact on an
organization's internal control structure; advising on how to
reshape key reporting areas and performance measures; managing the
change initiative for people, process and technology; and assisting
with planning and cost considerations. To register for either
webinar, please visit: http://www.protiviti.com/go/events About
Protiviti Protiviti (http://www.protiviti.com/) is a global
business consulting and internal audit firm composed of experts
specializing in risk, advisory and transaction services. The firm
helps solve problems in finance and transactions, operations,
technology, litigation, governance, risk, and compliance.
Protiviti's highly trained, results-oriented professionals provide
a unique perspective on a wide range of critical business issues
for clients in the Americas, Asia-Pacific, Europe and the Middle
East. Protiviti has more than 60 locations worldwide and is a
wholly owned subsidiary of Robert Half International Inc.
(NYSE:RHI). Founded in 1948, Robert Half International is a member
of the S&P 500 index. Protiviti is not licensed or registered
as a public accounting firm and does not issue opinions on
financial statements or offer attestation services.
http://www.newscom.com/cgi-bin/prnh/20090115/AQTH541LOGO
http://photoarchive.ap.org/ DATASOURCE: Protiviti CONTACT: Kathy
Keller of Protiviti, +1-650-234-6252, Web Site:
http://www.protiviti.com/
Copyright