IFRS the next big wave
Globalisation and investment across the globe has resulted in a need for comparable financial statements. Today different countries are following different GAAP as suggested by their local accounting bodies, there by making the financial statements comparison across the geography, a much complex process. IASB has tried to bring down the effort of financial statement normalisation through IFRS. The spend on IFRS convergence is expected to be as high as 0.5% of the revenue of a company.
Is there one solution for IFRS? Is automation a solution for IFRS? Answer is a big "No". There is no one solution for IFRS. We will have to identify and analyse the applicable accounting standards and then come up with a transition plan for convergence. IFRS is a business driven project and not a IT driven project. IT can enable IFRS implementation and has to be approached as such.
