IFRS + Information Systems
One of the areas that companies will need to focus on is the information systems. The September 2008 CA Magazine (Denis Posten et al) has an excellent overview of IT considerations and some excerpts from that article have been included.
“From a practical standpoint, conversion to IFRS may create a need for additional data, new or revised calculations within the system and changes in reporting. The information system areas that need attention range from initiation of transactions through to the generation of financial and management reports and will include ERP and those systems and controls required to provide and maintain data integrity within the ERP”. The authors also indicate the following should be considered:
• New data requirements — a more detailed presentation of information, new data fields, or calculating information in a different manner may be needed.
• Reconfiguration of ERP — numerous changes could call for a reconfiguration of how your business systems calculate and process data.
• Modifications to existing systems — many changes could also require new reports and changes to current business processing logic (calculation changes).
• Interface changes — with new data elements and changes to existing systems, the interfaces between dissimilar systems may also require changes.
• Data conversion — data elements may require updating or be moved to new systems. Automated transaction controls — or business process controls may be added or modified when any of the systems change.
• IT general controls — changes to IT systems and business process controls will result in a review of the general computer controls environment. Systems that were not previously subject to robust change control procedures and access controls may now be brought into the requirements of ICFR.
• Data retention requirements — with the adoption of IFRS and fair value models, the retention of information outside the legacy financial reporting system is likely to grow in volume and importance. As noted in the examples, new data elements may also become important and will require retention.
Edelkoort | Smethurst | Schein CPAs LLP is located in Burlington Ontario servicing the Golden Horseshoe and Greater Toronto Area and beyond. The firm is fully licensed with CPA Ontario to provide assurance, tax and accounting services as well as registered as tax preparers with the Canada Revenue Agency (CRA) & Internal Revenue Service (IRS). The firm is also registered as an IRS Certified Acceptance Agent.
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