Managing accounting change: Promoting quality implementations

February 2011
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Point of view: Managing accounting change: Promoting quality implementations

At a glance

Time, flexibility and good disclosures are key to quality. New accounting standards will be issued this year that will fundamentally change how companies account for revenue, leases, and financial instruments. Changes of this magnitude - combined with the complexity of the accounting - will require companies to devote significant time and resources to prepare for and implement the new standards.

Highlights

  • New accounting standards that are expected to be issued in 2011 will have far reaching financial and business impacts.
  • The proposed changes are so fundamental and pervasive that companies will need several years to develop the systems and processes necessary for implementation.
  • There are no ideal solutions for transitioning to these new standards considering the varying impacts they will have on different companies.
  • Companies should be able to decide what is in the best interest of their investors by being given the flexibility to manage their own pace and cost of change.