Move Over GAAP, Preparation Begins Now for Move to New International Financial
Reporting Standards
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
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: www.protiviti.com/go/events
About Protiviti
Protiviti (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.
SOURCE Protiviti
Kathy Keller of Protiviti, +1-650-234-6252, kathy.keller@protiviti.com
