The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

2.4 ACCOUNTING STEPS IN MIGRATING TO IFRSS

Migration to IFRSs involves many considerations beyond accounting, ranging from strategy, to competitive considerations, investor relations, process and operations management, organization, communication, human resources management, training, legal and taxation, and so on. From a purely accounting perspective, an entity should consider certain main steps, as Exhibit 2-2 illustrates.

Exhibit 2-2 Accounting Steps in Migrating to IFRSs

Mission and Strategic Focus Get top management commitment and buy-in Set up a clear strategy and timeframe to transition Appoint a project manager, a project team, and a steering committee and establish project discipline. Define project tollgates and milestones Quantify expected cost of adoption Address main issues concerning the audit committee, including systems and processes of internal control over financial reporting Define a strategy for communication and investor relations Set up a committee to revise taxation effects Cascade strategy setting targets and implementation plans to each area of the organization Set the tone to the organization Identification Phase Scope of First IFRS Financial Statements Based on local laws, determine whether migration to IFRSs and use of IFRS 1 are required Understand the impact of adopting IASB-IFRSs versus jurisdictional IFRSs on regulatory requirements Identify the targeted IFRS reporting date Define the number of comparative periods and, consequently, ...