International Financial Reporting Standards

On August 27, 2008, the Securities and Exchange Commission (SEC) proposed a roadmap outlining key milestones that need to be met as the SEC moves toward the mandatory adoption of International Financial Reporting Standards (IFRS) for all U.S. filers.

The proposed SEC roadmap provides an initial timeline enabling U.S. issuers to begin assessing the impact IFRS will have on their businesses and planning for an orderly transition to IFRS. The SEC proposed the 2014 date for the mandatory transition to IFRS as a guidepost, allowing companies sufficient time to improve finance operations and complete this major initiative, avoiding another SOX-like fire drill.

Companies need to consider the implications of IFRS on their financial results, financial processes, policies and controls.

The transition can be thought of as a set of staged activities that allow companies to take advantage of favorable financial factors, or minimize negative financial factors. This enables them to match financial reporting and financial market benefits to their readiness to implement. In addition, moving down the IFRS pathway enables entities to begin building global finance functions.

Jefferson Wells Impact Assessment Services will help you evaluate organizational readiness and recommend next steps. We perform analysis of the impact and risks of transitioning from U.S. GAAP to IFRS with respect to internal and external financial statements, tax accounting, strategy and planning, and project management needs during the assessment phase and continuing into the implementation phase. We also analyze current policies, procedures, processes and related internal controls for consistent and complete compliance with SOX 302 and 404.

In addition, Jefferson Wells can:

• Provide technical consultation and interpretation assistance
• Create training plans to educate staff and senior management about IFRS and its implications
• Draft technical memos supporting management assumptions, calculations and conclusions
• Prepare work papers cross-referenced to technical literature and supporting documentation
• Draft or review pro forma financial statements in accordance with IFRS, including providing disclosure recommendations and completing or reviewing disclosure checklists