Managing the Transition to IFRS-Based Financial Reporting: A Practical Guide to Planning and Implementing a Transition to IFRS or National GAAP

APPENDIX 3: SUMMARY OF IFRS TRANSITION PLANNING CONSIDERATIONS

Initial Planning Considerations:

• Has a project team been established and does it include representatives from relevant business functions?
• Is the project leader sufficiently experienced and credible?
• Has a project overview, including key milestones, been created?
• Does the project have the support of senior executives?
• Is there likely to be a resistance to change to deal with?
• Has a SWOT analysis been performed on the transition?
• What is the timeline; when is the first IFRS reporting period?
• What is the overall scope and strategy of the transition?
• Has liaison with the external audit firm commenced?
• If external consultants are needed, have they been engaged?
• Has a training programme for project team members commenced?
• Has the cost of the transition been estimated, and finance secured?
• Is there a need to recruit more IFRS-literate personnel?
• Is dual reporting required during the period of transition or after transition?
• Does the project cater for a post-implementation review to be carried out?

Accounting and Financial Reporting Matters:

• Has a line-by-line accounting impact analysis been conducted?
• Are the IFRS 1 optional exemptions being applied?
• Have accounting implications been prioritised?
• What additional disclosures will be needed in the notes to the financial statements?
• What are the accounting areas where significant judgement will need to be applied?
• What level of materiality should be applied?
• Is there ...