The globalization of business has spurred an unprecedented surge of cross-border M&A over the past decades, and many companies around the world consider cross -border M&A as an essential tool in achieving globalization of their businesses. Such cross-border M&A often requires US GAAP or IFRS conversion of local GAAP financial information for various reporting purposes.
In addition, as more and more countries around the world adopt IFRS, companies reporting in these countries change their reporting standards, making it necessary for their subsidiary or branch operations in the US to convert to IFRS.
Converting a set of financial information from one GAAP to another and embedding such processes of GAAP conversion require transformational change throughout the organization, affecting business processes, legal, IT, tax, accounting and reporting aspects of the business, to name a few.
Impacts to companies:
What companies should do: