Potential System Impacts of an IFRS Conversion

As a company prepares to convert to International Financial Reporting Standards (IFRS), the impact to information technology (IT) and financial systems should be taken into consideration. Representatives from the company’s IT department should be involved throughout the planning process to evaluate how the proposed accounting changes will impact the financial systems (transactional or reporting). The impact can vary depending on a company’s existing structure and environment. This may include its IT and financial systems capability/integration, industry complexity, company size, relevance of business process/transaction, internal control structure, mergers & acquisitions process, and other attributes. For more information, read the AICPA white paper, Financial System Considerations in IFRS Conversion Projects, which explores IT implications of an IFRS conversion, implementation considerations and lessons learned from the European experience.