The simplified diagram below outlines a process that

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: technical specifications is to understand the detailed end-to-end flow of information from the source systems, such as project or licence operational sub-ledgers to the general ledger and further to the consolidation and reporting systems. The simplified diagram below outlines a process that organisations can adopt to identify the impact on information systems. From accounting gaps to information sources The foundation of the project, as described earlier, is to understand the local GAAP to IFRS accounting differences and the effects of those differences. That initial analysis needs to be followed by determining the effect of those accounting gaps on internal information systems and internal controls. What oil and gas companies need to determine is which systems will need to change and translate accounting 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 23 How to identify the impact on information systems There are many ways in which information systems may be affected, from the initiation of transactions through to the generation of financial reports. The following table shows some areas in which information systems change might be required under IFRS, depending on facts and circumstances. Change New data requirements New accounting disclosure and recognition requirements may require more detailed information, new types of data, and new fields; and information may need to be calculated on a different basis. Changes to the chart of accounts There will almost always be a change to the chart of accounts due to reclassifications and additional reporting criteria. Reconfiguration of existing systems Existing systems may have built-in capabilities for specific IFRS changes, particularly the larger enterprise resource planning (ERP) systems and high-end general ledger packages. Modifications to existing sy...
View Full Document

Ask a homework question - tutors are online