IFRS Implementation Success Factors

The common theme to successful IFRS conversion projects points the efficiency of planning, implementation and communication. These themes are an integral part of each case of the conversion and can serve as checks for ensuring the value and sound design of each task.
Project management

Strong project management skills are critical to the success of an IFRS conversion project. The project tends to be complex involving people from different departments and domains with varying skill sets in multiple streams concurrently working over the extended period of the implementation. Input of external experts in various areas, system specialists have to be integrated for achieving the purpose.

Given that routine business operation pressures would not abate for the purposes of implementation, it is recommended that a Project Management approach is installed. IFRSlive provides the project management services. Having an expertise on IFRS conversion and with the understanding of the interdependencies—the critical relational and sequencing aspects of the tasks in an IFRS conversion—an important aspect of effective execution will be carried out seamlessly.

Knowledge transfer

IFRSlive is committed to facilitating knowledge transfer throughout the conversion process. Effective knowledge transfer is achieved primarily through two avenues:

• Training— Individuals both inside and outside the financial reporting function, across multiple levels of the company, will require some degree of training on IFRS. IFRS knowledge will be necessary for some to perform their jobs, while for others the understanding will bring clarity around how IFRS may be impacting them (e.g., through new IFRS-based performance metrics or a change in stock-based compensation structure). The level of detail and the timing of the training will impact the quality and volume of the IFRS learning retained.

• Teaming— IFRSlive advisors encourage collaborative working rather than simply outsourcing. This is done to with the company staff to retain the benefits of going through the conversion; they need to work side-by-side
with advisors, learning by doing. This will minimize the learning curve and help ensure that IFRS reporting is repeatable once the conversion is completed.

Changing the Company DNA
Though an IFRS conversion is a one-time event, however many of the changes are not reversible. The DNA of the company changes and should embed IFRS reporting into the fabric of its operations, rather than “patching over” existing Indian GAAP processes. Embedding changes and implementing appropriate internal controls will help minimize the risk of errors and make sure IFRS reporting is sustainable going forward. Embedding will also more closely align IFRS conversion with the long-term operational and process goals of the company.