NEW YORK, August 5, 2008 — International Financial Reporting Standards (IFRS) implementation is expected to result in significant changes for companies and, in light of the regulatory landscape, the time is now for companies to develop a plan for the accounting switch according to a paper released today by Deloitte.

The Deloitte paper, “International Financial Reporting Standards for U.S. Companies: Planning for IFRS Adoption,” provides analysis of the planning process, which includes assessing technical accounting and tax, process and statutory reporting, technology infrastructure and organizational issues.

“As economic turmoil has brought accounting and financial issues to the forefront, investors, companies, regulators and the public are paying close attention to how IFRS can impact financial reporting and market conditions,” said D.J. Gannon, a partner with Deloitte & Touche LLP and leader of its IFRS Solutions Center. “IFRS emphasizes transparency in financial reporting which, ultimately, is expected to provide financial information that is more closely aligned with the economics underlying the transactions and events accounted for in the financial statements. This is expected to enable executives and investors to make proactive and better-informed business decisions.”

The paper suggests taking a proactive approach to IFRS implementation, with particular emphasis on understanding “big picture” issues that go beyond accounting and financial reporting. Specific action steps include:

• Take an inventory of current IFRS reporting requirements and opportunities. Inventory current IFRS reporting requirements and locations to understand the extent of IFRS reporting already occurring at the company and to identify the resources within the organization to assist in the IFRS effort.
• Identify and inventory first-time adoption issues. Another important step in adopting IFRS involves identification of first-time adoption issues, such as conversion elections available and other IFRS accounting standards that may have an impact.
• Determine changes to key tax positions, provisions, processes, and technology. An IFRS tax assessment is likely to identify tax positions and tax accounting methods that may be impacted by changes to financial reporting standards. Tax professionals should consider  performing a high-level impact analysis that highlights potential changes to the tax provision.
• Determine key changes to technology infrastructure. IFRS can have broad implications on front-end systems, general ledgers, sub-ledgers and reporting applications that may need to be evaluated as part of an impact analysis.
• Identify the impact on existing system projects. As new systems projects are scoped and planned, it is important to align these project requirements with the likely impact of IFRS reporting.
• Conduct a key stakeholder analysis. Identifying target audiences and stakeholder groups impacted by IFRS and assessing their current level of understanding and communication needs is an important step in planning for the impacts of IFRS.
• Develop IFRS communication and training plans. Communication and training will be an essential element in effectively planning for and managing the necessary changes resulting from an IFRS conversion. Establishing a proactive plan to address the near and long-term training and communication requirements for each stakeholder group can further support the overall IFRS plan.

The Deloitte paper is available at www.deloitte.com/us/ifrs/planning. D.J. Gannon is available to discuss the varying business and systems implications that companies may need to consider in adopting IFRS.  Please contact Daniel Mucisko at 212-492-2870 or dmucisko@deloitte.com to schedule an interview.

About Deloitte
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.