| Many organizations are evaluating how a transition to IFRS will affect them. The questions below will help you assess your readiness for a transition to IFRS. Obviously, they cannot replace what will surely be a nuanced decision-making process supported by detailed and specific analysis. These questions, however, should spur discussions that will help you determine when to start transition efforts, scope those activities and identify potential improvement opportunities that would strengthen current operations and lay a stronger foundation for the eventual adoption of IFRS. |
Strategy |
| Is senior management committed to building a global finance function that creates business value? |
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| Have you planned for the impact of IFRS on non-U.S. revenue growth? |
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| Have you built the impact of IFRS into capital allocation models? |
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| Have you incorporated IFRS into tax planning models? |
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| Have you incorporated IFRS into strategic transaction models? |
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Industry |
| Are you monitoring whether competitors in your industry are preparing financial statements based on IFRS? |
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| Are you monitoring industry regulators for IFRS-based rules changes? |
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Process |
| Have you implemented well-documented, global policies? |
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| Have you implemented consistent, streamlined global processes? |
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| Have you centralized a significant portion of your financial operations? |
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| Have you reduced your time to close? |
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| Have you strengthened your company’s ability to make significant accounting judgments efficiently? |
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Technology |
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| Are you using the current releases of your accounting systems with no plans to upgrade or make changes? |
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| Have you reduced your total number of accounting systems? |
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Skills |
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| Have you assessed the IFRS skills of key line and operational staff members outside of finance? |
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| Have you assessed the availability of skills needed to implement IFRS? |
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| Have you assessed the IFRS skills of the finance staff? |
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| Are you prepared to rotate staff members to leverage or build IFRS experience? |
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Score |
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