Prepare for IFRS with the Starter Kit for IFRS for SAP BusinessObjects Financial Consolidation
- by Dr. Karol Bliznak, Vice President, SAP AG
- August 18, 2009
The adoption of International Financial Reporting Standards (IFRS) as part of a global international accounting convergence can be expensive for your company because it is an implementation rather than just an accounting or reporting project. Learn about the latest starter kit from SAP for its SAP BusinessObjects Financial Consolidation application, which can speed up and smooth your company’s transition to IFRS. It provides complete configurations from data collection to publishing of financial statements. See how to adjust the starter kit to meet your company’s requirements.
The international accounting standards are experiencing a global convergence with an expected major effect in North America in the name of International Financial Reporting Standards (IFRS). Canada must adopt IFRS starting in 2011 and if the US Securities and Exchange Commission (SEC) in 2011 votes in favor of IFRS, it will be a staggered switch to IFRS for all US companies in the 2014-2016 time frame. The US SEC has already started accepting IFRS-based filings from foreign issuers.
The adoption of IFRS in other regions such as Europe shows the transition can be expensive (with transition costs ranging from hundreds of thousands to millions per company) and should be thought of as an implementation, not just an accounting project. Change requires a cross-functional team and affects a company’s organization at all levels, as well as its business processes and technology. Technology includes transactional systems (such as SAP General Ledger and subledgers) as well as your company’s analytical and reporting environment. You need to adapt the analytical financial consolidation and reporting environment, playing a key transition enabler role.
While there are some quick-fix solutions on the market to enable IFRS reporting, in the long term SAP users are advised to return to their SAP software and update both the transactional layer and the reporting and analytical layer. The SAP product portfolio addresses these two technology layers in a comprehensive way:
Would you like to see this full item?