TRANSITION TO INTERNATIOANAL FINANCIAL REPORTING STANDARDS – NEEDS AND PROBLEMS

Abstract

The efforts for successful conversion to International Financial Reporting standards (IFRS) are characterized by a thorough strategic assessment, creation of a robust step-by-step plan, alignment of resources to the efficient execution of the plan, and smooth integration of the change into normal business operations. In a business-wide conversion, all departments that contribute to the creation of financial information, or that use financial information in their daily activities, should be involved. The existence of a global benchmark enables direct comparison of corporate financial reports between jurisdictions. Such high-quality standards enhance investor’s confidence by allowing economic transactions of a similar nature to be treated and reflected in the same manner around the globe