International Financial Reporting Standards
The adoption of the “International Financial Reporting Standards” (IFRS) means changes that will affect the structure of a company’s financial and accounting processes. These changes will not only impact the company’s technology platform and information systems but will requiere management to set a change strategy in place to ensure a successful adoption.
The implementation of the Standards means changes in three core areas of the company. The business as such will be affected by having to establish new accounting policies, restructure reporting procedures, update information systems and educate personnel at all levels of the organization regarding the implications and benefits of adopting the Standards. On the other hand, the means used to calculate results, whether the distribution of dividends, compensation, business policies, payment of taxes, among others, must be reviewed and adapted to the new system. Lastly, a change management process must be carried out efficiently to guarantee that the business continues to operate without interruptions.
A number of countries have already adopted the Standards and because its adoption is not just a matter of numbers, NEORIS has developed a methodology that includes all the necessary steps and criteria to guarantee a successful adoption. This methodology has been developed from the extensive experience that NEORIS has obtained in providing support to a number of clients during this process.
- Better quality of the information
- Transparency and increased reliability
- Standardization and stability of the reporting method
- Reduction in complexity
- Improvements in the comparison of financial information
- Improvements in making investment decisions
- Better possibilities to access financing
- Reduction in the cost of business capital
- Opportunity to optimize processes and technology