Building business efficiencies and greater competitiveness for North American companies. Regulatory authorities are on track to make the International Financial Reporting Standards (IFRS) a requirement for all publicly-traded companies in the US, Canada, and Mexico over the next few years. For public companies in these countries, the transition to IFRS will be the most significant regulatory change in many years and one with potential to directly impact overall competitive position.
The impetus for the change is clear—create a consistent international approach to financial
accounting so investors can better compare the financial performance of companies operating in different countries and, by doing so, foster deeper and more liquid capital markets that facilitate economic growth.
However, the specific implications for the companies who must transform their financial accounting from the applicable Generally Accepted Accounting Principles (GAAP) to IFRS are less clear. Will the adoption of IFRS simply mean companies must undergo a costly technical conversion of their internal accounting processes? Or will the change represent a more fundamental business transformation that leads to greater efficiency and a more competitive position, both domestically and internationally. Or will it be a combination of the two?
Since first becoming a mandatory requirement in European Union countries in 2005, IFRS has become the financial accounting standard in more than 100 countries. With more than 70,000 customers worldwide, many of whom have made the transition to IFRS, Infor™ has had considerable direct experience helping companies make the transition and in observing how the change has impacted their business. Based on our experience, we believe there are distinct competitive advantages that can be realized as part of the IFRS transition process.
In this whitepaper, we discuss the business process changes that US and Canadian companies will have to make in transitioning from their respective GAAPs to IFRS. And we show how these business process changes can make companies operating in the US and Canada more competitive, as well as compliant with the IFRS regulation.