The worldwide “principles-based” accounting standards for general purpose financial statements being issued by the International Accounting Standards Board (IASB) are called International Financial Reporting Standards (IFRS). Currently, over 80 countries/regions are allowing or requiring the preparation of financial statements in accordance with IFRS and others in the process of adopting the standards. Worldwide adoption of IFRS as the primary accounting standard is expected around 2015 – will you be prepared?
When reporting under IFRS, any changes to the standard will dramatically affect your business, processes, data, and systems. Your system will need to:
- Have the functionality to meet IFRS requirements
- Handle more data and calculations on a different basis of accounting due to new disclosure and recognition requirements
- Support multi-GAAP accounting and parallel reporting requirements
- Adapt to system impacts at all levels: Source Systems, Sub-ledger, GL, Consolidation and Reporting
- Enable data adjustments and/or data conversions
In light of this, before you being an IFRS project, it is critical to your business to fully assess your system capabilities, functionality, and options, as well as identify any finance or IT projects that may be impacted. If the changes needed to make your system IFRS compliant are overly complex and costly, consider implementing a solution that is already ready to comply with the standards and will adapt with the changing requirements, like Microsoft Dynamics AX.
Microsoft Dynamics AX supports IFRS compliance with robust tools, a flexible, adaptable foundation, and internal/external reporting transparency.Implementing a Microsoft Dynamics AX solution now will prepare you for:
- A first time adoption of IFRS
- The presentation of financial statements
- Property, plant, and equipment requirements
- Changes in foreign exchange rates
Read Microsoft’s complete report on “IFRS for Microsoft Dynamics AX” to gain a better understanding of the implications of IFRS adoption on your business management systems and processes.