Distilling IFRS for the chemicals industry
Download Distilling IFRS for the chemicals industry
The eventual transition to International Financial Reporting Standards (IFRS) in the United States is inevitable. The change will impact global and domestic companies, and will ultimately lead to IFRS replacing US Generally Accepted Accounting Principles (US GAAP) for public companies 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 chemicals industry, 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).
Assessing the impact of GAAP differences on key business issues facing chemicals companies is also an important element of planning for an IFRS conversion. Property, plant and equipmen, lease accounting, research and development, provisions, derivatives and income taxes are just a few areas to consider.
Distilling IFRS for the chemicals industry provides an overview of the significant accounting differences between IFRS and US GAAP, delves into how the differences might affect the chemicals industry and how companies can prepare for conversion.