According to the U.S Securities and Exchange Commission, there are over 85 countries that require reporting for all domestic, listed companies. “International Financial Reporting Standards (IFRS) adoption worldwide will be beneficial to investors and other financial statements, by reducing the costs of comparing alternative investments and increasing quality of info” (wikipedia). As more countries continue to embrace IFRS – and transition away from local Generally Accepted Accounting Principles (GAAP) – adopting these standards is one of the most fundamental challenges that companies will have to deal with in the near future.
Now that we all understand the importance of IFRS, let me quickly introduce myself. My name is Kristina Henn and I work on SAP’s Financial Rapid Deployment Solution Team. I have the overall responsibility of the development, delivery, and adoption of Financial rapid-deployment solutions, including our solution for IFRS: SAP rapid-deployment solution for financial close and disclosure management. This rapid-deployment solution can be implemented in less than 12 weeks and focuses on an integrated end-to-end EPM Financial Close process, allowing companies to easily comply with International Financial Reporting Standards (IFRS).
This new rapid-deployment solution for IFRS offers solutions to the issues raised by the adoption of IFRS for the financial reporting system at the corporate level. It supports both IFRS adoption approaches – the transition approach or the convergence approach. (Based on which approach chosen, detailed documentation is available to implement IFRS reporting. Check out this document about IFRS 5 implementation requirements: http://scn.sap.com/docs/DOC-20010).
For example, take a look at the screenshots below:
This rapid-deployment solution will allow you to smoothly transition from GAAP to IFRS or support the convergence approach expected in the US. Our IFRS starter kit can help you easily differentiate between local GAAP and IFRS data, post IFRS-specific journal entries, leverage preconfigured scenarios and reports – and even produce a complete audit of the differences between the two standards. This flexibility can be available in less than 13 weeks.
While this rapid-deployment solution enables you to quickly comply with IFRS, it will also enable you to:
- Leverage preconfigured consolidation processing, automatic business rules, audit trails, validation, and analysis. Quickly support scope changes – like incoming or outgoing subsidiaries, financial rate variation, mergers, and adjustments to your consolidation method.
- Accelerate your reporting processes with preconfigured financial reports based on IAS 1 for financial close and IFRS taxonomy. Rapidly pull data from the consolidation application into ready-made XBRL documents – for faster review, analysis, and preparation of financial data
With SAP’s rapid-deployment implementation methodology you can have this functionality in less than 13 weeks. SAP Rapid Deployment Solutions are ‘out-of-the-box’ – they include preconfigured software, implementation services, content, and end user enablement – you have the option to implement with SAP Services or a qualified Partner.
So in less than 13 weeks, you can support transition or convergence with IFRS! 🙂