IFRS Update for Audit Committees

The convergence of US GAAP with International Financial Reporting Standards (IFRS) for US companies seems increasingly likely. Audit Committees should anticipate this significant change and inquire of the CEO and CFO as to the readiness of the company, and their implementation plan for moving to IFRS if/when required by the SEC. Some questions the Audit Committee should include are:

  • What steps is the company taking to determine if the company should file using IFRS if an option is granted including the costs-benefits of adoption?
  • What are the impacts on doing business for a company (other than accounting) if IFRS adopted?
  • What is the level of knowledge of IFRS within the company?

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