Essential Workstreams are those areas which represent principle working groups responsible for achieving objectives in each Phase of the 5 Phase IFRS conversion project. Work streams are embedded within each of the 5 Phases. Each phase of the IFRS project must include a review of these functional areas to ensure overall success. This concept ensures that there is a structure in place, and that operational responsibility can be formally assigned. Project Management techniques are also imperative for successful IFRS conversion.
The Essential Workstreams can be summarized as follows:
Accounting and reporting Workstream
• Accounting diagnostic activities
• Identifying GAAP differences
• Develop IFRS accounting policies
• Skeleton financial statements and disclosures
• IFRS reporting package
• Opening Balance Sheet and comparative information
• Highly technical accounting and complex accounting areas
• Transitioning to operating models
• Ongoing update process
• Assists Accounting work stream in IAS 12 and ITA tax consequences
• Addresses tax compliance and planning with respect to IFRS
• External communications with tax authorities
Business processes and systems Work stream
• Works with Accounting and Reporting (WS 1) to implement changes to business, IT and processes driven by IFRS accounting changes across various business areas affected.
• Identifies the impact on processes including Financial Statement Close Process, resolution and implementation of new processes.
• Assists IFRS conversion team in developing and implementing work plans to resolve issues impacting the business.
• Identifies issues and resolve and IT change issues, including impact of current and planned IT projects.
• Communication with respect to employee and stakeholder issues.
Regulatory and Industry Work stream
• Supports Accounting with Industry specific areas
• Focus on developing and implementing all deliverables relevant to industry areas
• Industry specific Regulatory Reporting requirement with respect to IFRS
Change Management, communication and training Work stream
• Training – affect on conversion on function business areas and required employee skill sets.
• Training needs assessment, and education
• Communication – internal and external
• Organizational and HR changes.
• Compliance review process
• Business Process metrics
• IFRS Implementation support
Acknowledgements for the 5 Phase IFRS Conversion model go to CICA and E&Y.
I hope this helps. This is one of a series of blogs that is meant to convey information relating to Canada’s transition from Canadian GAAP to IFRS.
For further information, please refer to the ongoing series of IFRS blogs on the Edelkoort Smethurst Schein CPA’s LLP web-site and please remember to contact your accounting professional for further guidance.
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.
All blog posts published on this site are for informational purposes only and do not constitute professional advice. Readers should contact a professional to discuss their individual situation. Neither the author or the accounting firm shall accept any liability for any reliance placed on the information posted.