IFRS Considerations For Audit Committees, By Deloitte
Feb. 18, 2009
FEI Summary

The strong global movement toward International Financial Reporting Standards, as published by the International Accounting Standards Board, and movement by the U.S. Securities and Exchange Commission in recent years to accept reporting in IFRS by foreign private issuers and propose an IFRS roadmap for the potential use of IFRS by U.S. public companies, has created a need for audit committees and company management to discuss the potential costs,

benefits and other effects of a potential transition to IFRS.

Because audit committees have a fiduciary responsibility to protect the interest of shareholders and oversee the integrity of the company’s financial reporting process, their involvement in a potential transition to IFRS is essential in considering issues such as: 

• The company’s readiness for a new basis of accounting that involves fewer rules and therefore a greater reliance on management’s judgment;
• The time needed to prepare for a transition;
• Management of implementation costs; and
• The need for audit committee and board education.

On Feb. 5, 2009,Deloitte, published IFRS Considerations for Audit Committees to assist audit committee members in preparing for meaningful and effective conversations about IFRS with company management, independent auditors and others. For each of several accounting topics, the Deloitte publication presents: 

• A high-level overview of IFRS accounting requirements and potential IFRS–U.S. GAAP differences;
• Implementation considerations; and
• Key questions audit committees should ask.

Read more in Deloitte’s: IFRS Considerations for Audit Committees.