Explain the steps that would be needed for your

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Explain the steps that would be needed for your selected portfolio company to transition from GAAP to IFRS.In order for Target to transition from GAAP to IFRS it will require technical, strategic and operational changes. The transition will affect many aspects of the company’s operations from information technology systems and tax reporting requirements, internal reporting and key performance metrics and the tracking of stock-based compensation[Wha13]. Due to the enormity of the transition and in the best interest of facilitating effective project management the adoption process should happen in three major phases: diagnosis, development, and delivery[Fin17]. The initial phase that should be assessed is diagnosis. This is the most important phase in order to achieve a successfulconvergence. Diagnosis will assess the readiness of Target and address all parts of the company that play a part in transitioning to IFRS. An incorrect assessment of influences and scale will have a cascading impact throughout the project. The following should be specific focus areas: IFRS-specific skills, training, external agreements, and financial statements. It needs to be determined if IFRS-specific skills are currently available withinthe company. If the skills are not available, then what steps need to be done in order to obtain them. A suggestion is accounting firms and training firms that currently have IFRSpractices. Training needs to be looked at to see what is required across the company to support the transition. External contracts need to be reviewed that are in place to see which ones have financial ratios agreements attached that may be affected by IFRS. The impact on financial statements also needs to be reviewed. For example, operations will the daily process of how things are done need to be changed in order to align the
TARGET CORPORATION11operations with how the results will now be reported. The second phase development willfocus on developing in depth strategies that each part of the business will need to implement. It will also include a more thorough analysis of the accounting and disclosureimpacts, impacts of the information systems, human resources, and comprehensive communications both internally and externally. The final phase is delivery in which the implementation of IFRS compliance strategies begin. This stage includes testing, comparativeness, reporting and auditing. B.Explain how a financial statementwould differ under IFRS as opposed to GAAP.i.How is a financial statement under IFRS different from GAAP? How is it the same?The differences include inventory, extraordinary items, cash flow, net profit and loss, income taxes, segment reporting, foreign currency transactions, discontinuing operations, employee benefits, and earnings per share. IFRS excludes the recognition of extraordinary items. IFRS is more restrictive in regards to the way cash flow must be treated than GAAP. Interest paid and dividends received must be classified as operating cash flows. Dividends must be

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