IFRS compliance: How far ahead (or behind) are we?

At present, there are approximately 117 nations that permit or require International Financial Reporting Standards (IFRS) for domestic listed companies, including listed companies in the European Union. Other countries, including Canada and India, are expected to transition to IFRS by 2011. Mexico plans to adopt IFRS for all listed companies starting in 2012. Some estimate that the number of countries requiring or accepting IFRS could grow to 150 in the next few years. Japan has introduced a roadmap for adoption that it will decide on in 2012 (with adoption planned for 2016). Still other countries have plans to converge (eliminate significant differences) with their national standards with IFRS. Having said this, it is becoming evident that the IFRS is rapidly gaining dominance as the global standard in the preparation of public company financial statements.

The IFRS, a set of accounting standards formulated by the International Accounting Standards Board (IASB) apply to the general purpose financial statements and other financial reporting by profit-oriented entities – those engaged in commercial, industrial, financial, and similar activities, regardless of their legal form.  As IFRS becomes more widespread, CPAs, financial statement preparers and auditors will have to become informed and well-versed with the new rules and trends. Others, such as actuaries and valuation experts who are engaged by management to assist in measuring certain assets and liabilities, are not currently taught IFRS. To remedy this situation, they must be given comprehensive training and be lectured on the subject. This does not apply exclusively to auditors and accountants, but also to parties other than profit-oriented business entities who may also find IFRS appropriate.

In the Philippines, IFRS is being adopted locally as the Philippines Financial Reporting Standards (PFRS). This includes all applicable PFRS, Philippines Accounting Standards (PAS), Philippine Interpretations Committee (PIC)/Standing Interpretations Committee (SIC)/International Financial Reporting Interpretations Committee (IFRIC) Interpretations which have been approved by the Philippine Financial Reporting Standards Council (FRSC) and adopted by the Philippine Securities and Exchange Commission (SEC). PFRS and PAS are based on the IFRS and IAS issued by the IASB. Consequently, these changes have greatly affected the business community and its affiliated industries. This has elicited several reactions, some adverse, to the costs and effort required to comply with the new set of standards. Who is going to account for the cost needed in order to adopt these standards? How vast are its effects on smaller enterprises? Is it really worth it in the long run?

These questions and more will be addressed to in the 2^nd Bookkeepers Congress, happening this May 6 and 7, 2010, at the SMX Convention Center. Entitled “Gearing the Bookkeeping Industry towards Global Competency”, the event is aiming to empower the bookkeeping industry towards becoming globally knowledgeable and thus professionalizing this industry which, as others might have overlooked, plays a vital role in the business industry. This event is that is beneficial not only for bookkeepers but also anyone and everyone involved in performing, monitoring and maintaining business and accounting process such as finance managers, finance officers, accountants, accounting managers, cost accountants, cost analysts, budget analysts, systems analysts, auditors, financial planners and finance, management and accounting students, among others.

Organized by Entrepreneurs Accounting Academy, this year’s featured speaker is international IFRS expert Bobbe Barnes, an educator and consultant with many years of professional experience in IFRS, US GAAP and certification training around the world. Along with other guest speakers Bureau of Internal Revenue (BIR) Commissioner Joel Tan –Torres, who will be speaking on “The Impact of PFRS Adoption on Philippine Taxation” and Rosalinda D. Evangelista, PhD., CPA, sought-after educator, consultant and speaker on the Philippine Reporting Standards (PFRS).

Don’t pass up on attending this event. Visit the official 2^nd Bookkeepers Congress website for more details about this event, and register online here!