Managing the Transition to IFRS–Based Financial Reporting: A Practical Guide to Planning and Implementing a Transition to IFRS or National GAAP

A complete guide to understanding and managing the transition to IFRS Following the lead of the EU, companies in the UK and other countries around the world will be required to move to IFRS-based financial reporting over the next few years. While there are numerous resources available dealing with IFRS requirements and accounting principles, this is the first book to provide a comprehensive guide to planning and implementing a transition that also covers the wider commercial implications, and puts the transition into a project management context. Written by a leading educator and trainer in financial reporting, Managing the Transition to IFRS-based Financial Reporting largely avoids highly technical financial reporting concepts and instead focuses on the practical points that need to be considered when preparing to adopt IFRS. Part One of the book provides an overview of the framework of a transition to IFRS, as well as a discussion on the international harmonisation of financial reporting. Part Two provides practical guidance on planning and implementing an IFRS transition, including accounting considerations and wider transitional issues. Part Three looks ahead to the impact of transitions to IFRS by companies in the US, Japan and the BRIC nations, and includes coverage of the transition to the new UK GAAP. A truly comprehensive guide, this book covers the practical implications of the transition at all levels of a company, a topic that is very important but often overlooked by those both teaching and learning about the subject.

List of Tables vii List of Figures ix List of Case Studies xi Foreword xiii Preface xv Disclaimer xvii Acknowledgements xix About the Author xxi Introduction xxiii I: Understanding the Framework of Performing a Transition to IFRS–based Financial Reporting 1 1 International Financial Reporting in Context 3 2 The Conceptual Framework of IFRS, Accounting Policies and the Presentation of Financial Statements 25 3 IFRS 1 First–time Adoption of IFRS 43 II: Planning and Implementing a Transition Project 67 4 Establishing the IFRS Transition Project 69 5 Assessing the Accounting Impacts of IFRS Transition 105 6 Wider Transitional Issues – Systems, Internal Audit and the Audit Committee, and Commercial Implications 129 7 Training, Communication and Change Management 163 III: The Way Forward – Developments in Selected Countries 187 8 The Transition to New UK GAAP 189 9 The Way Forward – The Move Towards IFRS in the US and Selected Other Countries 207 Appendix 1: IASB Standards 223 Appendix 2: Useful Reference Material and Further Reading 225 Appendix 3: Summary of IFRS Transition Planning Considerations 229 Bibliography 231 Index 237

LISA WEAVER , is a professionally qualified accountant and a Fellow of the Institute of Chartered Accountants in England and Wales. After working in audit for several years, she moved into training and education and has lectured on financial reporting, audit and governance topics in the UK and Ireland, the Caribbean, and in Hong Kong and China. She is currently a Teaching Fellow in Accounting at Aston Business School, part of Aston University in the UK.