Unformatted text preview: from the source systems and manipulated by models to create IFRS adjustments that are processed manually through the general ledger, the impact of these adjustments on internal reporting should be carefully considered. Alterations to calculations and the addition of new data in source systems as well as the new timing of data feeds could impact key ratios and percentages in internal reports, which may need to be redeveloped to accommodate them. 2011 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2011 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. Impact of IFRS: Oil and Gas 29 People: Knowledge transfer and change management
When your company reports for the first time under IFRS, the preparation of those financial statements will require IFRS knowledge to have been successfully transferred to the financial reporting team. Timely and effective knowledge transfer is an essential part of a successful and efficient IFRS conversion project.
The people impacts of IFRS range from an accounts payable clerk coding invoices differently under IFRS to Audit Committee approval of disclosures for IFRS reporting. There is a broad spectrum of people-related issues, all of which require an estimation of the changes that are needed under the IFRS reporting regime. The success of the project will depend on the people involved. There needs to be an emphasis on communications, engagement, training, support and senior sponsorship, all of which are part of change management. Training should not be underestimated and companies often don't fully appreciate the levels of investment and resource involved in training. Although most conversions are driven by a central team, you ultimately need to ensure that the conversion project is not dependent on key individuals and is sustainable in the long term across the whole organisation. Distinguishing between differen...
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