The Microsoft Dynamics AX Product Management Team has recently published some excellent information on PartnerSource regarding International Financial Reporting Standards.
According to the team…
International Financial Reporting Standards (IFRS) are worldwide “principles-based” accounting standards for general purpose financial statements, issued by the International Accounting Standards Board (IASB). According to IASB, more than 80 countries/regions – from Australia, South Africa, Singapore, Argentina to Zimbabwe – require, or allow on a voluntary basis, the preparation of financial statements in accordance with IFRS. Other countries/regions, such as Brazil, Canada, India, and Mexico, are currently holding convergence discussions or are in the process of adopting IFRS. Worldwide adoption of IFRS as the primary accounting standard is expected around 2015.
Converting to IFRS poses various process or system challenges to organizations worldwide. The impact on information systems from IFRS arises from the differences between the country/region-specific accounting standards currently applied (US GAAP, for example) and IFRS. To help organizations meet these challenges, Microsoft Dynamics AX was designed to support certain IFRS requirements by allowing organizations to capture, analyze, and report data in a manner that helps them meet the designated IFRS requirements.
The extent to which information systems are affected by IFRS varies, depending on the market, size and business segment of the organization. Each organization should carefully analyze the extent to which the changes being made to the accounting standards will impact their information systems. Microsoft provides detailed illustrations on how Microsoft Dynamics AX supports specific IFRS scenarios to help organizations with making important changes towards this set of standards.
Visit PartnerSource to learn more about International Financial Reporting Standards and Microsoft Dynamics AX.