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Audit > Implementation of International Financial Reporting Standards -IFRS

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Implementation of International Financial Reporting Standards -IFRS

The implementation of IFRS is not just a change of accounting policies; it is a change that requires extensive disclosures that explain how the financial position, the results of operations and the cash flows of the entity have been affected. Understanding the impact of the adoption of IFRS in different aspects, accounting, financial, tax and technology is important in order to have a successful implementation.

Our work program to implement the adoption of the IFRSs, in accordance with IFRS 1.

The adoption for the first time of the international financial reporting standards considers three phases, as follows:

Diagnosis
Execution of field work
Issuance of the report.

The implementation of IFRS leads to an effort of training and on-going training of accountants in new international standards since the standards and their interpretations change with time.

International financial reporting standards – IFRS – is the international business language. In Peru the Stock Market Superintendence through the publication of resolution No. 011-2012-SMV/01 SMV, issued in April 2012, recognizes that the globalization of the economy and internationalization of markets has generated the need to adopt a common language for the exchange of information, having quality standards and greater transparency; therefore, it requires the submission of audited financial statements under the framework of the IFRS.

The change to IFRS is a reality; thus, companies should be aware that their conversion requires a transformation that involves employees, processes and systems. A conversion planned and managed properly can present substantial improvements in the performance of the finance function as well as better controls and reduced costs.