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Unformatted text preview: licit acknowledgement on the part of the company for frequent auditor involvement. Clear expectations should Monitoring peer group
The oil and gas community often uses industry benchmarks and peer group comparisons. As such, most oil and gas companies in a given geography will want to know what their peers are doing as it relates to IFRS and what 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 31 be set around all key deliverables, including timely IFRS technical partner involvement. The Audit Committee also needs to ensure that the external audit teams have reviewed changes to accounting policies alongside the approval by Audit Committee. Proper planning for new and enhanced internal controls and certification process as part of your IFRS conversion should be considered. Assessment of internal control design for accounting policy management as well as financial close processes are integral and companies need to be aware of the impact of any manual work-arounds used. Documentation of new policies, procedures and the underlying internal controls will all need to be reflected as part of the IFRS process. Benefits of IFRS
While the majority of this paper has focused on the micro-based risks and issues associated with IFRS and IFRS conversions, senior management should not lose sight of the macrobased benefits to IFRS conversion. IFRS may offer more global transparency and ease access to foreign capital markets and investments, and that may help facilitate cross-border acquisitions, ventures and spin-offs. For example, and as a final thought, by converting to IFRS, oil and gas companies should be able to present their financial reports to a wider capital community. If this lowers the lending rate to...
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