Press Release: Move Over GAAP, Preparation Begins Now for Move to New International Financial Reporting Standards
October 27, 2009
FOR IMMEDIATE RELEASENew 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, 2009 -- 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. 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.
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