In the world of Finance and Accounting, it’s imperative to stay ahead of the curve regarding changes in government regulations and compliance requirements. The area of financial reporting has gotten a lot of attention in this economic climate, and the need for transparency and comparison of global financial statements has grown. To meet this need, the SEC is moving towards the adoption of International Financial Reporting Standards (IFRS) as the global standard for public company financial statements. While there is no deadline set for compliance, it’s possible that this changeover could be required within the next three years. The bottom line is all public companies, especially global ones, need to start taking steps toward compliance with IFRS.
It’s important to know what this means for your business, and what changes you need to make. Your company’s ERP software is one of the most important pieces in accommodating the reporting requirements of both IFRS and US GAAP. Of course, it will impact more than just financial reporting - information technology, tax requirements, internal reporting and other operations will need to be reevaluated to make sure they support the new process.
Transitions of this magnitude are never easy, but if your business runs the new version of MS Dynamics GP, it will be less complicated. Microsoft Dynamics Great Plains Version 11, also known as Microsoft Dynamics GP 2010, is slated for release this spring. It includes tools that will allow businesses to set up reporting ledgers for both U.S. GAAP and IFRS, which will be necessary for companies required to report in both formats. For example, if you are a public company headquartered in the U.S. with subsidiaries in Europe, you may already have faced this challenge. Even if your company operates solely in the US, you may be required to provide reports in both GAAP and IFRS during the adoption phase. MS Dynamics GP 11 will also have stronger links with Office 2010, which will greatly improve Business Intelligence (BI) and analysis capabilities for users.
According to the AICPA (American Institute of Certified Public Accountants), Canada and India are on the fast track to transition to IFRS in 2011. Currently, all companies in Europe either require or allow IFRS. If your business is looking for a simpler way to handle the IFRS transition, start by evaluating your ERP system. Contact your local Microsoft Partner to learn more about the full range of MS Dynamics products and how they can optimize your business.
by OmniVue Business Solutions – Georgia Microsoft Dynamics GP Partner
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