IFRS provides opportunity to transform functions.

• Author: Heffes, Ellen M.
• Position: FINANCIAL REPORTING

Chief financial officers and other executives of United States-listed companies view the conversion from U.S. generally accepted accounting principles to International Financial Reporting Standards as an opportunity to transform their finance functions and create more value for their companies by mitigating financial reporting risk, increasing financial financial transparency and creating operational efficiencies.

This is among the findings of a new study by global management-consulting, technology services and outsourcing company Accenture. The study of more than 200 CFOs and other financial executives of companies with a minimum of $1 billion in annual revenues followed the U.S. Securities and Exchange Commission's proposal to potentially require U.S.-listed firms to report financial results in accordance with IFRS rather than U.S. GAAP as early as 2014.

While many expect the conversion process to be complex and expensive, more than three-quarters (83 percent) believe that conversion will present an opportunity to make significant improvements within their finance functions, particularly in performance management.

Further, they said they will invest in technology, process improvements and finance workforce training associated with planning, budgeting and forecasting; management reporting; and metrics and statutory reporting.

Providing an indication of how adopting IFRS will affect U.S. companies beyond finance departments, more than half (52 percent) of those surveyed said that adopting IFRS will affect all major areas of their business, including information technology (71 percent); business...