IFRS vs GAAP
Any thoughts on the conversion from GAAP reporting to IFRS? This could be the single most important initiative facing the financial world today. Appears we have until 2014 to fully convert (which really means 2011).
Asked by Jeanette Eberhardt
If you want to ask if there is an opportunity, the answer is a definite yes. From what I know of others’ experience from this forum itself, IFRS updates entail 3-4 months of the corporate finance teams effort and thus a lot of consultants will be spending client resources to keep things chugging along. If the concern is the implementation timelines, then again the obvious is correct as IFRS implies getting the entire compliance into a compact window and thus the sooner it is implemented the better it is for everyone. The initiative however, is not so fine with International co-operation still in process to actually achieve a standard way of looking at this “consistent” standard and that means there will be rework as we go along especially probably in the sectors where it was need the most – retail sales, higher education and probably travel and automotive. Banking sector would probably take a lead again in the implementation as there the MTM clauses are simpler and already denote a higher correlation between european and american standards. We have most Top 100 companies already taking steps in this direction because they have significant operations on both continents so let me know what kind of ‘ideas’ you are looking for in this forum. best regards amit”