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Examples include groups such as tax authorities

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Unformatted text preview: ource (HR) groups into detailed accounting discussions early on in the conversion process. In a similar context, external stakeholders should be properly identified and communicated with throughout the IFRS conversion. Examples include groups such as tax authorities, regulators, industry analysts and the financial media. Every identified group needs to be factored into the timing of when and how to present changes in operational reporting because of IFRS. Furthermore, for internal stakeholders, project related deliverables need to be incorporated Audit Committee and Board of Directors considerations The Audit Committee and Board of Directors should be actively informed and included in the process so that they are appropriately engaged in the conversion process and do not become a bottleneck for certain key decisions. All IFRS conversions should ensure that Board and Audit Committee meetings are acknowledged on the project plan as these meetings can drive key deliverables and provide incentive for timely delivery. Other senior management groups also need to have tailored and periodic training to suit their knowledge requirements so as to not overwhelm them with accounting theory on IFRS. Clearly there is a balance to be struck between the accounting understanding required and the responsibilities of the group undergoing the training. Other areas of IFRS risks to mitigate A quality IFRS conversion needs to enable an accounting process involving change management and complexity to be as risk-free as possible. It is essential that an oil and gas company does not miss deadlines, or issue reports including errors. As such, the stakes are high when it comes to IFRS conversion and oil and gas companies are no different in this regard. There are a number of areas to consider, but the two main ones are around the use of the external auditor and the internal control certification requirements. The close co-operation and use of the company's auditors should be an integral part of the IFRS governance process of the project. There needs to be exp...
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