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Unformatted text preview: cial statements gives a different result under IFRS.
The measurement of operational performance cuts across all parts of an organisation and effects the internal business drivers and external perceptions of the company. The assessment of who those affected groups are, and when the appropriate time for communications will be, is a key component of an IFRS conversion project. into the IFRS project's objectives to help ensure their successful achievement. A common failure of all industries is the lack of a communications strategy through which companies ensure that all key stakeholder groups are fully informed of the project's progress. At a minimum this includes the quarterly and annual disclosures in the financial reports, but may need a much broader communications strategy. choices and options are being taken by others. Investors and analysts may also want to be able to look across oil and gas companies and be aware of the differences, so as to factor those differences into their various buy/sell/ hold recommendations. Management will need to assess its oil and gas peer group, but the manner in which this is achieved may vary depending on the working relationship with its peers. Past practice has seen the oil and gas sector form groups that informally share updates on accounting interpretations, practical issues and choices being made throughout the IFRS conversion projects, as well as more formal discussions occurring through the facilitation of oil and gas industry bodies. Stakeholder analysis and communications
A thorough review of the internal and external stakeholders is an essential first step. Certain less obvious internal stakeholder groups may be engaged only in the conversion process at a late stage, but the awareness of when to engage those groups is necessary. For example, most oil and gas companies have union representatives that will need to be involved for changes to compensation schemes if, for example, bonuses are based on earnings per share measures that will alter under IFRS. However, there is little point bringing the unions or human res...
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