The accounting profession has been busy. The Financial Accounting Standards Board (FASB) is rewriting accounting rules related to revenue recognition, leasing, financial instruments, and insurance contracts — phew — that’s a lot to tackle at once, and there’s more to follow. Comment letters are flying. Companies are more engaged in monitoring FASB meetings than ever before, the accounting firms are trying to educate their clients and audit committees, and internal auditing is gearing up to perform readiness assessments — once we can figure out when to book the work.
There is a quote — don’t know the author — but it seems fitting now:
“Life can either be accepted or changed. If it is not accepted, it must be changed. If it cannot be changed, then it must be accepted.”
So, we’re going to have to face it. There will be change. It will be hard. It might be expensive. The FASB and U.S. Securities and Exchange Commission are once again inviting U.S. companies to get involved in the conversation. Don’t be one of those who sit there complaining that International Financial Reporting Standards (IFRS) will be the end of the world as we know it. Really? Shape the outcome.
Auditors: Start learning. Read up on IFRS — what changes will have the most impact on your organization and industry? What will be the impact on enterprise systems if certain standards are adopted prospectively? Retroactively? Are accounting resources going to be sufficiently trained to perform this work? Will your auditors be sufficiently trained?
And the big question: Will it even happen at all? When?
Posted on Jan 25, 2011 by Kiko Harvey
Share This Article: