 |
||||||
| Friday, November 20, 2009 |
Contact Us
|
 RSS
|
|||||
|
|
| |
|||
|
||||||
|
||||||
|
|
ANALYSIS
March 2, 2009
Sagging Index no longer reflects what’s going on in the market, some say, Replacements? Google it, to start.
March 2, 2009
Downward price spiral will actually boost the cost of capital for most companies. CFOS, take note.
March 2, 2009
The latest bailout at AIG could be a preview of how the president will deal with Wall Street.
March 2, 2009
No corporate defaults. Big debt offerings. Percolating CP issuance. Things may be looking up in the capital markets.
|
|
|
|
November 25, 2008 1:56 PM ET
Almost half of companies surveyed by PricewaterhouseCoopers haven’t started thinking about conducting a preliminary study assessing the impact of the conversion to international financial reporting standards on their business. The Securities and Exchange Commission released its road map on IFRS at the beginning of the month, with a mandate for U.S. accelerated filers to transition to international accounting standards by 2014. Companies will also need to have two sets of books, one in IFRS and one using generally accepted accounting principles, for two years prior to the transition for comparison purposes. Such juggling could take planning. Yet only a third of companies surveyed by PWC during a webcast said they are in the process of doing a preliminary study (see the full poll results at the bottom of this page). Some 43% haven’t even thought at all about doing such a study and 24.3% are planning to conduct a preliminary study after 2009. When asked to cite their concerns about the conversion to IFRS, more than two-thirds of the respondents picked every choice offered. Specifically, the respondents said they are worried about the time and cost of the conversion, the organizational impact internally and externally, the complexity of the conversion process and finding in-house IFRS talent. PWC recommended during the webcast that companies start with their preliminary study by the end of the year or in 2009, according to Tessie Johnson, an advisory partner and IFRS conversion specialist at the firm. “Starting early is key to identify the necessary changes and implement them,” she said. Some companies may want to leave enough time for system changes prior to 2012, for instance. “I also think that many companies may want to start early to be able to do as much in-house as possible.” Nancy Beacham, another advisory partner and IFRS conversion specialist at PWC, said that a lot of clients ask her why they should bother planning so early for the transition considering the road map doesn’t ask companies to comply until 2014. “While it may seem like it’s a long time out, Jan. 1, 2012 is really just a few years away, and the amount of work and effort that may be involved depending on what type of approach the company may take, that can certainly fill that time slot pretty quickly,” she said. She added that it doesn’t mean companies need to do everything in the next few months. But she said they should at least start getting organized. Part of that organizing: identifying processes and systems that need to be put in place to produce results based on IFRS by 2012. A Little Iffy on IFRS Poll #1: What is your company's status with regard to considering a conversion to IFRS? In the process of doing a preliminary study: 32.8% Planning on a preliminary study after 2009: 24.3% Still have not thought about a preliminary study: 42.9% Poll #2: What is your philosophy of an IFRS conversion approach? Big bang: 8.2% Wait & see: 21.0% Phased-in: 70.8% Poll #3: Do you believe that the use of appropriate tools is critical for the success of IFRS transition? Critical: 72.0% Not critical: 2.9% Somewhat critical: 19.8% No opinion: 5.3% Poll #4: What is your major concern as you take the initial step toward the conversion process? Time and cost: 12.4% Organizational impact, both internal and external: 5.5% Complexity of conversion process: 12.8% In-house IFRS talent: 2.9% All of the above: 66.4% Poll #5: What do you see as the greatest opportunity a successful conversion will provide to your organization? Reduced complexity in applying accounting policy across business units and geographical areas: 57.9% Ability to access capital more efficiently: 10.1% Cost savings due to process efficiencies and shared resources: 17.2% Streamlined M&A activity by using the most commonly accepted global accounting language: 14.8% Source: PricewaterhouseCoopers
|
|
|
|
CRAIN'S BENEFITS OUTLOOK 2009
SPECIAL REPORT
MOST POPULAR
|
MORE ANALYSIS
Crain Financial Group:
InvestmentNews |
Pensions & Investments |
Workforce Management
Copyright ©2009 Crain Communications Inc
All rights reserved.
Privacy Policy |
Terms & Conditions