International Financial Reporting Standards(IFRS)
Meeting IFRS Compliance Requirements
The International Financial Reporting Standards (IFRS) are a core set of accounting standards that are being adopted by countries around the world. The globalization of business and finance has created the need for a common set of accounting standards to be used by all countries as a way to increase the efficiency of cross-border transaction handling and accountability. The need to implement IFRS has highlighted the utility of BPM technology as the increasing number of compliance initiatives poses numerous challenges for companies of all sizes. The high cost of non-compliance is a risk that companies cannot afford to take. With BPM technology, compliance initiatives become engrained in every company process, leaving no room for error.
With backing from the SEC, the International Organization of Securities Commissions, and the International Accounting Standards Board, IFRS will soon be a mandatory requirement for businesses in every country. To date, more than 12, 000 companies in over 100 countries have adopted IFRS. The EU began adopting IFRS in 2005, with Canada to join the list in 2011 and the United States in 2014.
What Is Your Company Doing About IFRS?
The adoption of IFRS requires businesses to take a proactive role to achieve compliance . In order to take a proactive approach to compliance, companies in every industry are using Business Process Management (BPM) to implement the change. New IFRS accounting processes can be modeled using Interfacing’s BPM suite, the Enterprise Process Center®, and can be easily distributed across your enterprise with the click of a button. EPC’s workflow engine can automate the process, reducing the amount of manual labour required by employees. Controls can be implemented and associated with tasks, ensuring that every necessary step is taken in order to comply with IFRS. The Enterprise Process Center’s audit features track any changes to company processes, rules, documents, and controls. Audit plans can be created, automated, and saved for future use, taking the pain out of an audit process.
Overall, the EPC gives every company the ability to effectively manage all of their compliance initiatives from ISO to IFRS. Decreasing operating costs becomes difficult as compliance requirements increase. This, however, does not need to be the case. Use the Enterprise Process Center today to easily and effectively map, implement, and manage your compliance initiatives, reducing the associated risks of non-compliance.
Beyond Financial Reporting
Although only a financial reporting standard, IFRS will surely affect every aspect of your company. As stated by the American Institute of Certified Public Accountants, “[IFRS]… will have an impact far beyond just financial reports. It will affect almost every aspect of a […] company’s operations, everything from its information technology systems, to its tax reporting requirements, to the way it tracks stock-based compensation.”
Mapping your processes using the Enterprise Process Center allows you to visualize every company process. The EPC will highlight every possible process component that will be affected by the implementation of IFRS, ensuring a proactive solution to change. Overlooking process areas that are affected by the implementation of IFRS can result in severe penalties and process inefficiency. Reduce this risk and implement an effective, cost reducing IFRS program with the help of the Enterprise Process Center.