Reporting meets IFRS standards

Description

International Financial Reporting Standards (IFRS) are a set of accounting principles developed by the International Accounting Standards Board (IASB). This feature enables the company to generate financial reports that are compliant with globally recognized standards, thus enhancing credibility and transparency in the eyes of stakeholders and regulatory authorities.

Example Use Case

Scenario: A large enterprise operating in several countries is utilizing CPM software for its financial and business performance reporting. However, given its international exposure, the company must adhere to IFRS standards in its financial reports.

Solution: The enterprise selects CPM software that has the capability to generate reports following IFRS guidelines. The reporting feature ensures accurate representation of financial data, such as assets, liabilities, and equity. This way, the company can easily produce international-standard compliant financial statements, regardless of the country's local accounting standards.

Considerations

Many systems do not offer IFRS-compliant reporting out of the box. They expect this to be implemented as a part of a consulting arrangement. If so, that means you'll be responsible for updating that for new rules as time goes on. This may not be a huge issue as the IASB does annual reviews and often makes no material changes.

For vendors that do offer something pre-built, make sure they actively monitor IFRS rule changes and add those to the software as needed.

Questions to Ask a Vendor

• IFRS Compliance: How does your system ensure that reports meet IFRS standards? Are these built into the software or do they require customization?
• Updates: How are updates in IFRS regulations incorporated into the system? How often does the software receive updates?
• Reporting Types: Can we run reports in US GAAP and IFRS in the same system? If so, can we compare the two side by side?