GAAP is out…IFRS is in. At least that’s the plan according to the SEC. We in the US are all about to get some schooling on how the rest of the world does accounting. The SEC has outlined the roadmap for making the jump in the US to International Financial Reporting Standards (IFRS). While the mandatory transition may seem far into the future with the broad transition to IFRS proposed to begin in 2014, the effects on US companies will begin years earlier. Thank goodness the SEC is giving us some time to get ready for the test. This transition will not only be a major workout for US based corporate accounting departments, but IT departments will get in on the fun as well as they implement the methodology in their systems.
SAP has IFRS Experience that is Second to None
US Companies running SAP will benefit from the mounds of experience SAP has with IFRS. Currently, all of Europe and about 100 other countries are on IFRS, with Europe being a huge market for SAP. Non-accelerated filers with the SEC will have the further advantage of having their accelerated filer brethren making the upgrade 1-2 years before them. Also, by 2014 most, if not all, of SAP’s customers will be on ECC6 or later. This does not necessarily mean they will all be on the “New GL” available in ECC6, but at least 4.6 & 4.7 should be aberrations in the customer landscape. That said, what will be the options available to US companies that are converting from GAAP to IFRS?
LAZAR is currently lookin for Pilot customers for our IFRS solution. For more information contact us.