This chapter will outline the benefits of establishing IFRS transition as a major project within the reporting entity, a project spanning many different functions and having potentially far-reaching, and maybe unanticipated, consequences. Entities yet to go through transition are well placed to draw on the experiences of those that have already moved to IFRS-based reporting. The experiences are not always positive, with many transitions being rushed and poorly planned, especially for early adopters working to tight deadlines. This, while unfortunate for the organisations involved, provides valuable learning points for those yet to plan their transitions.
The main stages of the project will be outlined and some examples of how to map the project will be discussed, drawing on case studies to provide evidence of how the project was managed in different organisations. In this chapter the first two stages of the project will be explored, namely establishing the project team and scoping the project. This chapter will also consider the involvement of external specialists and the costs of transition, with the need for proper budgeting and adequate financing. Subsequent chapters will discuss impact assessments, IT and systems issues, the wider implications of transition on the business, and finally matters relating to training and communications.
4.1 THE BENEFIT OF EXPERIENCE
It may seem an obvious point that the transition to IFRS must be ...