The conversion to International Financial Reporting Standards (IFRS) affects the entire organization, going well beyond the finance and accounting functions. PwC specialists examine your organization’s processes and controls using our tried and tested TransitionIFRS Methodology framework and will recommend and implement changes to ensure not only a smoother transition to IFRS, but a more efficient business structure going forward.

The data, process, systems and controls requirements for implementing IFRS are integrated within the framework to ensure that the IFRS conversion process is sufficiently controlled and properly embedded within the organization. Here is an overview of the key areas of data, process, systems and controls requirements at each phase of the IFRS conversion.

Phase 1

In the first phase, we conduct an assessment to determine what impact the conversion process will have on your organization's processes, systems and controls.

Preliminary Study (“Diagnostic”)

• High-level analysis of data, systems and process requirements (overall and by component – potential data gaps, potential need for finance process and systems modifications)
• Assessment of impact on internal controls and compliance
• Report on potential data, process, systems and controls impact

Phase 2

During this phase, we conduct the actual conversion to IFRS and prepare your first financial statements under the new standards.

Project Set-up

• Definition of roles and responsibilities (including skills gap analysis)
• Creation of detailed project plan (including data, process, systems and controls elements)

Component Evaluation and Issues Resolution

• Data mapping, mining and gap analysis
• Identification and analysis of IFRS component finance process, systems and controls requirements
• Determination of strategy for meeting data, process, systems and controls requirements (tactical versus systems-based)

Prepare Financial Statements

• Analysis of options for process, systems and controls modification
• Design of process, systems and controls modifications
• Update of ICFR risk assessment and identification of key controls within modified processes and systems

Phase 3

During this phase, we help your organization embed the principles of IFRS into your organization, including making any needed changes to your processes, systems and controls.

Integrate Change

• Development of implementation strategy and plan
• Execution of change management process and controls
• Implementation of process, systems and controls modifications
• Conversion testing
• Update of ICFR documentation, testing strategy and test scripts
• Embedding of process, systems and controls changes through training, ongoing communication and balanced scorecard monitoring

How PwC can help

To learn more about the potential impact of IFRS on your whole business organization, contact one of our IFRS professionals.