IFRS Accounting with Microsoft Dynamics® GP: Functional and Strategic Challenges of Implementing the Chosen Methodology

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Functional Challenges of Implementing the Chosen Methodology

With multiple methods of implementing a transition from GAAP to IFRS financial statements, at the core is the need for a flexible information management system. 

  • Multiple external and internal reports are typically required.
  • IFRS transaction identifiers must meet a company’s unique needs while not interfering with other needs.
  • GAAP and IFRS requirements change over time so the system must be capable of implementing those changes.

When implementing the change from GAAP to IFRS we must evaluate the human element.  Changes in processes will result in higher error rates while employees are learning the new processes and requirements.

The Statement of Cash Flow can be prepared using either a Direct or Indirect method.  Utilizing both methods will improve stockholder, director, and management reaction to the changes caused by the transition to IFRS reporting.

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Strategic Challenges of Implementing the Chosen Methodology

The strategic impact of a change from GAAP to IFRS will be at the root of the decision process.  Developing an understanding of the changes is vital in order to mitigate the impact on operations and cash flow.  The transition to or use of IFRS may significantly improve or worsen results.  This is at the heart of the prolonged negotiation between nations, accounting standards boards, and the SEC with its international equivalents, regarding THE International Financial Reporting Standard.

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In the next blog we’ll examine the IFRS Accounting with Microsoft Dynamics® GP: Existing Microsoft Dynamics® GP Transaction Origins Capable of Simplifying IFRS Entries.

©2011, Computeration®, Inc.

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Coming soon…our free IFRS white paper. Reserve your copy of  If IFRS is on Your Horizon, What are Your Choices? now.

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By Gloria Braunschweig, The IFRS Implementation Expert for Dynamics GP, with Computeration, a Pacific Northwest Microsoft Dynamics GP Partner.

Computeration specializes in ways to enhance your company’s solutions with Microsoft Dynamics GP in Idaho, Oregon, and Southwest Washington, with clients around the world, Computeration makes your implementation successful by offering experienced project management, data integration, training, and consulting services.

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