Engineering change: Constructive thinking for the construction industry

Download Engineering change: Constructive thinking for the construction industry.

International Financial Reporting Standards (IFRS) is likely to be adopted in the US in the near future. The change will impact global and domestic companies, and will lead to IFRS replacing US Generally Accepted Accounting Principles (US GAAP) for public companies, either over time, or at some point in the relative near term. Adoption may be a smooth transition for some companies, but our experience shows it's likely to be complex for most.

This paper discusses the impact of IFRS on the engineering and construction sector, and what is required to transition successfully. Companies need to think far beyond the finance and accounting functions, and involve departments such as human resources, investor relations, business development, tax, treasury and information technology (IT).

Engineering and construction companies should consider the opportunities a conversion can present. Companies can increase operational effectiveness and adopt new accounting policies that may simplify the financial reporting process and improve upon investor communication. Embracing these opportunities should yield long-term benefits to the organization.

Engineering change: Constructive thinking for the construction industry provides an overview of the significant accounting differences between IFRS and US-GAAP, and delves into how the differences might affect the engineering and construction industry and how companies can prepare for conversion.