With the recent IFRS timeline approved by the SEC this past February, U.S public companies should now plan on a required 2015 adoption date. This provides SAP customers with at the very least an extra year (based on the original 2014 timeline) to get their system, people, and processes compliant.
One thing important to note, is that an IFRS adoption is not soley limited to how an organization reports their financial statements (although that is a big part of it), but there are also significant ramifications on a company’s organizational structure, transactional systems, business transactions, and end-user training. By getting a head start on the project, companies can give themselves additional time to really understand the issues, assess the impact of IFRS, and find a solution that best fits their needs. IFRS should be looked at as a unique opportunity to re-evaluate current reporting and financial consolidations processes and as a means to improve their overall business processes.
Based on the attendance at SAP Insider's recent Financials and GRC 2010 conferences held in March, it seems interest in IFRS and its impact has been growing more and more. Also, interestingly enough, in a recent survey of 2,500 executives done by KPMG LLP, 49% said they would like the option to adopt IFRS before 2015, if the U.S. does plan to formally make the switch.
How is your organization reacting to the S
EC's new timeline?