As the U.S. starts picking up the pace towards converging to IFRS for SMEs it will be important for not only organizations to get up to speed on the new standards, but also for their banks and financial institutions to understand IFRS. These new standards will not only impact financial statements, but will touch just about every area of a business' operations from human resources to tax to information systems.
Which of my clients will be impacted by IFRS?
Most of them. Even privately-held companies will experience significant changes as these standards come down the pike. Although an official conversion date is yet to be defined the Securities and Exchange Commission (SEC) is proposing between 2014 - 2016. So why worry about this now?
What is the timeline?
The official timeline is set to be announced this summer, the proposed dates published in 2008 were:
2014 for large accelerated filers
2015 for accelerated filers
2016 for non-accelerated filers
Although many of your clients may not be required to comply for a few years, U.S. private companies and nor-for-profit organizations can choose to follow IFRS today. Many will want to do so due to the less complex reporting methods. Understanding these financial statements will be key to continue to keep relevant in the financial institution market. The IASB has developed a version of IFRS for small and medium-size entities that would minimize complexity and reduce the cost of financial statement preparation, yet allow users of those entities' financial statements to assess financial position, cash flows, and performance.
How can we keep in front of IFRS and its impact on us?
In addition to our blog and events, our IFRS advisement team has been visiting local financial institutions to provide a complimentary overview and education on IFRS and allow for your team to ask questions. BCG&Co. is committed to educating our business community on these changes as it will impact our clients and their relationships with their banks and lenders. Contact our IFRS experts to set up a training seminar today.