• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

I have heard that cost of converting to IFRS from local GAAP could be significantly high. It it true? Is it certain that such costs will be compensated by higher efficiency?
in General Accounting Discussion by
retagged by

1 Answer

0 votes
It is true that conversion would involve substantial costs in staff training & IT system modifications also you need to overcome the employee resistance for change. Generally the conversion process would start with a gap analysis of the current GAAPs used & IFRS to identify the areas to be changed. You might have to outsource the gap analysis to an Accounting firm & they alone may charge a significant amount.

However the conversion, in theory, should result in cost reductions. Practically the costs reductions will depend on the type of the organization & the commitment of the management toward proper implementation.
by Level 2 Member (3.2k points)