Embedding IFRS
Conversion to IFRS and/or adoption of new or amended IFRS standards is not the end of the story. The continued need to embed IFRS across wider systems and processes means that companies must continually adapt their finance function to meet the reporting challenges and achieve long-term efficiency.
Making IFRS sustainable doesn't always require a large, costly and lengthy project. In a pressurised, numbers-focused environment, there is often very little opportunity to reflect on the bigger picture and practical improvements that could be made, but taking time helps to establish where to focus to improve the effectiveness of the finance operation.
Embedding is about taking those tactical approaches that were designed to meet the immediate IFRS reporting deadlines and transforming them into more sustainable, efficient and effective procedures. This means moving IFRS reporting from being a costly chore to being business as usual.
Some problems that companies commonly face after conversion include:
- Not being able to repeat an efficient close under a new set of reporting standards. This may happen if knowledge transfer was not built into the project and the balance of company and consultant involvement didn’t weigh up
- The implications of a new set of reporting standards were broader than anticipated, often resulting in unforeseen business consequences
- Weak processes and internal controls over the production of the new numbers, and controls that are not well integrated within the business.
Some of these issues may have existed before IFRS. But they are frequently exacerbated by the additional strain of new reporting requirements. We can work with you to help anticipate these problems and come up with a solution that is timely and right for your business.
Making IFRS business as usual
Embedding is about ensuring that IFRS becomes a 'business as usual' activity, rather than an annual reporting concern. It also meansreducing risk in your business as sustainable processes supersede the tactical approach.
Our experienced specialists have a tried and tested approach to assessing companies' progress against a range of indicators of embedding. Our IFRS embedding review - consisting of a series of structured interviews - will help you identify, plan and prioritise the steps needed to move towards sustainable and flexible reporting.
This review will enable you to meet the ongoing challenge of IFRS with confidence - both now and in the future - to reduce costs, minimise errors and mitigate risks.
